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Coinckeck Exchange encountered a withdrawal of $373 million on first day of trading since hack

Feb 16, 2018 Posted /  1151 Views

Coinckeck Exchange encountered a withdrawal of $373 million on first day of trading  since hack

After suffering through the biggest cyber theft in the history of $500 million, the Coincheck exchange allowed Yen withdrawals for the first time after the heist on Tuesday. Considering it as an opportunity, a huge number of users withdrew their money which showed the distrust of people on exchange platform. The Chief Operating Officer, Yusuke Otsuka promised that the theft amount will be reimbursed to the users. But he did not comment on the root cause of the cybercrime

Further Yusuke Otsuka told that they have engaged an external firm to conduct security checks before resuming operations. The Coincheck has also submitted a report to Financial service Agency of Japan briefing about how the heist occurred, what measures would be taken to compensate users and plans to strengthen the system to avoid such hacks in future.

As per sources, Otsuka said that they have taken desirable measures to regain the trust of users and believe that their business will continue. He further mentioned that they have necessary fundings as well.

Earlier Coincheck was operating without a license and they were allowed to do so. But after the heist, the FSA is giving a thought on whether to grant a license or not and the decision would be made based on the report submitted by Coincheck.

“If we do not receive the license, it would be against the law to continue operations,” - Otsuka

It is still not clear whether Coincheck has identified the cyber thieves and Otsuka did not share its details as well. He said that the details are in the report submitted to the Financial Service agency which cannot be disclosed by them.

As per sources, a south Korean spying agency investigated on the matter and pointed towards North Korean hackers to arrange the heist.

Otsuka has been claiming from last month that the Coincheck will repay the victims. He further said that the platform will pay  88.549 yen for each NEM stolen coin. Since the theft, the price of NEM has degraded to about 56 yen.

“We’re checking each currency on deposit one by one with a third-party security firm, Once we have confirmed the security, we will resume”  - Otsuka

While commenting on other deposited cryptocurrencies such as Ether and Ripple, the withdrawals have not been permitted yet. Otsuka stated that the trading will resume after receiving the approval from the third party on security checks and completion of reimbursement of the stolen coin .

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