Published: Tue, March 13, 2018
Research | By Jody Lindsey

Coincheck Hack: $500m Boost for XEM as Exchange Begins Payout

Coincheck Hack: $500m Boost for XEM as Exchange Begins Payout

Coincheck - the Japanese digital currency exchanging platform has initiated to refund users and traders that were touched by the famous hack of $534 million worth of NEM in January 26, while simultaneously giving the opportunity of selling specific cryptos and withdrawals - based on the press releases that were set out on on the exchanges website. According to the press release, which also noted that BTC sales were never paused, ETH, ETC, XRP, LTC, BCH can now also be sold again on the exchange.

The Financial Services Agency said Coincheck lacked proper systems for dealing money laundering and terrorism financing, and in the second such punishment since the hack ordered it to submit a report on how it would improve by until March 22. The payment will be done in Japanese Yen at a value of 88.5 yen, approx $0.83, one Nem coin.

Japan's Financial Services Agency (FSA) had initially responded to the hack by conducting on-site inspections of the 15 unregistered cryptocurrency exchanges in Japan.

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Coincheck, on the other hand, asserts it is still optimistic about getting a permit from the FSA after obtaining a "business improvement order" from the regulator today. Hackers were able to make off with them because the coins were kept in a hot wallet. As reported by Japan's local publication Nikkei Asian Review, Coincheck earlier identified that the cause of the theft was a malware infecting the company's internal computer systems.

After the malware emails were sent and opened, Coincheck's system began contacting external services based in Europe and the U.S. without any proper authorization. The suspicious communications went on until nearly midnight on January 25, then stopped as a large amount of NEM began moving out of the exchange's system soon after the date changed to January 26.

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