Sunday, 21 October, 2018

Ten cryptocurrency traders have filed a lawsuit against Coincheck following $530m theft

Line From Japan Plans To Open Cryptocurrency Trading Exchange Ten cryptocurrency traders have filed a lawsuit against Coincheck following $530m theft
Nellie Chapman | 16 February, 2018, 08:22

With the lawsuit looming, Coincheck also faces a deadline Tuesday to submit a report on the hack, including an outline on how the company will change its security protocols to prevent future breaches, to Japan's Financial Services Agency (FSA).

According to Reuters, ten traders will file the claim at the Tokyo District Court over Coincheck's freezing of cryptocurrency withdrawals.

The report included Coincheck's investigation into the heist and details of steps to bolster its risk management system, Chief Operating Officer Yusuke Otsuka told a news conference.

Japan's creation of a regulatory system is in sharp contrast to clampdowns on the trade by policymakers in countries such as South Korea, China and India.

According to a company announcement on February 13, soon after Coincheck partially resumed operations on Tuesday, it had already processed 40.1 billion yen (or $373 million) in withdrawal requests from existing investors.

Back in January one of the biggest hacks on a cryptocurrency exchange took place when Japanese firm Coincheck had around 530 million dollars' worth of NEM coins stolen.

He declined to comment on whether the FSA had verified that Coincheck has enough funds for the repayments.

Meanwhile, a group of traders are set to file a lawsuit against Coincheck on Thursday, Reuters reports.

Coincheck Inc. users withdrew ¥40.1 billion ($373 million) from the cryptocurrency exchange on Tuesday, the first day customers were allowed to pull out in the wake of the cybertheft of ¥58 billion ($533 million) worth of digital currency last month.

But the exchange has yet to clarify when it will resume cryptocurrency withdrawals, or begin compensation to some 260,000 affected customers.

A source said on Friday that Coincheck had received withdrawal requests from customers totalling about ¥30billion (R3.3bn).

Kuroda also said the BOJ was closely watching developments in cryptocurrency trading to ensure they do not erode public trust over the safety of existing settlement systems overseen by the central bank. "Some people say they should be described as crypto-assets, not cryptocurrencies", he explained.