Coincheck Lifts Some Trading Curbs, Begins Repaying Hack Victims
After suffering a devastating attack that left it short of over $500 million, Coincheck will begin repaying the victims who suffered losses and lift certain trading restrictions on its platform.
Coincheck announced on Monday it was removing some of the restrictions put in place after the hacking incident in January and would immediately start reimbursing customers affected by the massive cryptocurrency heist.
The move comes after much anxiety and pressure from Japanese regulators, themselves debating on the best ways to stop such calamities from happening again. As one of the world’s largest, the Japanese cryptocurrency market constantly has a target painted on its back for hackers chasing huge payouts. The incident at Coincheck was one of the worst attacks on a cryptocurrency exchange in history, on a par with the Mt. Gox disaster in 2014.
Coincheck will not only lift the withdrawal and trading freeze on several cryptocurrencies but also pay back a sum of roughly $430 million to the victims that experienced financial losses as a result of the hack.
After seeing the devastation caused by the exchange’s lax security, the Japanese government punished Coincheck and six other exchanges and put them under obligation to beef up their security.
Barely a month after this incident, another exchange began inadvertently giving away Bitcoin for free due to an error in its website.
The glitch was discovered within 20 minutes of it affecting Zaif, which did not provide enough time for mischievous actors to catch on and attempt to profit from the accidental giveaway.
This further heightened the anxiety of Japanese authorities, which are uncertain whether allowing exchanges to regulate themselves would prove sufficiently useful to stop problems like these from damaging the country’s cryptocurrency market as a whole.
It is still unclear what Japan’s regulatory framework will look like, but the country appears to be taking a reserved approach in comparison to market supervisory bodies in South Korea and China.