Hacked Japanese cryptocurrency exchange Coincheck refunds customers

Coincheck Inc., a hacked Japanese cryptocurrency trading platform operator said Tuesday it had spent ¥46.3 billion ($435 million) to compensate 260,000 customers who had held its digital currency called NEM.

The exchange had already reported that 523 million units of NEM were stolen in a cyberattack in January.

The company also said Tuesday that it had resumed some exchange services, according to The Wall Street Journal.

The customers received refunds in yen at a rate of 88.549 yen per NEM, in line with earlier promises by Coincheck. That is higher than the current market rate but lower than the ¥110 value at the time of the hacking.

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Coincheck, which has described itself as Japan’s largest bitcoin exchange, has said it hopes to stay in business, according to the Journal report. Coincheck hasn’t acquired a license from the Japanese government and the nation’s financial regulator has told the company twice to improve its governance and controls.

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Separately last week, exchanges FSHO and Bit Station were ordered by Japan’s Financial Services Agency to halt operations for one month, according to news reports. The regulator said one of Bit Station’s senior employees was found to have used a customers’ bitcoin for their own purposes.

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