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Coincheck To Compensate Hack Victims

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Coincheck which is a Major Japanese cryptocurrency exchange announced on Thursday that it will start compensating customers next week. The exchange was hacked on January 26 and lost approximately 58 billion yen (~USD$550 million) worth of the cryptocurrency NEM, held by approximately 260,000 customers. The incident forced the company to suspend almost all of its services.

Coincheck’s repayment plan was revealed on Thursday. The exchange has promised to repay victims 88.549 yen for each of the NEM coins stolen, which is a total of 46 billion yen. However, there have been some are criticisms of this decision, demanding compensation of the full amount at the time of the hack.

The exchange is also repaying victims in Japanese yen, rather than in cryptocurrency.Meanwhile, multiple lawsuits have already been filed against the company by victims for the return of their cryptocurrencies.

The investigation by the Japan Exchange Group (NEC) and five financial security companies revealed that “the cause of the leakage is seen as a malware infection via email to employee PCs,” Oricon reported. Multiple Coincheck employees received the malware-laced email, Otsuka described. Once an infected link was clicked, the virus spread, leading to the NEM theft, Nikkei explained.

However, the COO has not revealed whether the email originated from overseas or within Japan. “I am under investigation and I cannot reveal it,” the news outlet quoted him saying. Emphasizing that cryptocurrencies will be stored in cold wallets going forward, he added “In order to prevent re-attacks, we reconstructed our internal network, [which is] constantly monitored…restructured servers in new environments, and fully replaced business PCs.”

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