Monday, January 29,
2018 08.11AM / cointelegraph
Japanese cryptocurrency exchange Coincheck
Saturday, Jan. 27, that it will issue full refunds to all of the 260,000 of its
users who have become victims of the Friday NEM hack. The Coincheck exchange has been hacked yesterday, Jan. 26, resulting in a massive
loss of 523 mln NEM coins, worth approximately $534 mln at that time. During a press release following the
hack it has been revealed by the exchange’s representatives that the funds were
stored on a single-signature hot wallet, constituting a relatively low-security
The company has now confirmed its
intention to refund the stolen money to the affected users. According to the
announcement, the refunds will be done using the exchange’s own capital.
The company is still considering the
exact timing and methodology for the process. However, it has already announced
that the compensation for each NEM coin will be JPY 88.549, which is the
weighted average exchange rate during the period from when the trading was
halted to the release of the latest announcement.
Coincheck indicated that they are
referencing the XEM/JPY exchange rate at Zaif, another
Japanese exchange which has the most trading volume for XEM globally.
Furthermore, Coincheck has again
confirmed their intention to stay in business, as opposed to declaring
”Along with our ongoing efforts to
file applications to be registered as a Cryptocurrency Exchange Service
Provider with Financial Services Agency, we will continue business."
Community reacts favorably
The theft of the NEM coins represents
the largest hacking event in the history of cryptocurrency since the
Gox collapse, which also took place in Japan. The fact that the local
community has already been “battle-tested” has likely contributed to it
remaining largely unfazed by the latest event.
This is most apparently reflected
through the numbers, as the Japanese cryptocurrency markets rose, less than 24
hours since the hack took place.
The need to support Coincheck, especially in light of
their commitment to refund affected customers, has been a common sentiment
among Japanese crypto
community’s opinion leaders today, even as they acknowledged the exchange’s
part in not providing sufficient security for its NEM wallet.
Meanwhile, the development team behind NEM has
announced that it is working on an automated system that will track the
stolen coins and tag all addresses that receive the “tainted” money. This will
allow any cryptocurrency exchange to blacklist the hackers’ accounts,
preventing them from ever cashing out their illegally obtained fortune.
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