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Coin Check Users Are Suing the Exchange to Get Their Entire Money Back

Feb 14, 2018 Posted /  6011 Views

Coin Check Users Are Suing the Exchange to Get Their Entire Money Back

Coincheck might be crying its eyes out by now. First it faced the biggest cryptocurrency heist till date, and then it had to listen a great deal from the regulators. Now when it announced some days back to pay certain amount of money lost from its own pocket, some user are gearing up to sue the exchange to get its entire losses recovered up.

The fallout continues for with Lawsuit

Coincheck is continually facing criticism for it’s mishandling of the security solutions, which lead to breach and robbery of over $500 million worth of NEM. Now Reuters have reported that 10 traders are all set to sue the Tokyo-based exchange and are preparing a lawsuit with Tokyo's district court.  The lawsuit will be filed today and Hiromu Mochizuki, who has been tweeting some updates about the case lately, will represent the plaintiffs.

After the $530 million crypto-hack, Coincheck had froze its operations which held plenty of virtual wealth hostage in the process. The lawsuit demands that coincheck will have to let the plaintiffs withdraw their cryptocurrency wealth in order to remove them from the platform and relocate the coins to external wallets. As per the reports of Reuters, the group of 10 traders may also fill in a follow-up lawsuit to provide for their damages related to the hack later in February.

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Coincheck had frozen the withdrawals in Japanese yen on January 27 and only last week it signaled that it would recommence withdrawals of Yen after completing “the technical safety confirmation with the cooperation of external experts”

The heist have affected the credibility

The Coincheck exchange in the end of January 2018 had announced that the exchange has lost more than 500 million tokens of NEM and in the series of announcements afterwards delineated its plans for “reparations” to affected customers. Not only this Coincheck had promised to the users and clients that it would  “discover the root cause of the breach, safeguard our customers, and [take] more effective measures for system risk management and prevention of similar events in the future.”

The Coincheck heist came after many exchanges faced similar kind of incidents lately. Many exchanges in Europe and South Korea filed bankruptcy after they reported hacks and DDoS attacks. This has greatly affected the credibility of cryptocurrency exchanges amid new users and many are panicking to get their investments out from the exchanges. The incidents also lead to plummet in the price of major cryptocurrency and for the full month of January and now February have seen virtual currencies growth only in negative.

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