Japanese cryptocurrency exchange Coincheck has announced it will start compensating customers that suffered losses in its January hack starting from next week.
In a press conference Thursday, Coincheck CEO Koichiro Wada and COO Yusuke Otsuka said that the platform will release more details of the compensation process in the next few days. The pair also revealed a further plan to resume trading services for some cryptocurrencies next week.
As reported by CoinDesk, Coincheck first confirmed some 500 million NEM token had been stolen on Jan. 26, which at the time were worth around $530 million. Soon after the incident, the platform announced it would compensate each stolen token at a rate of $0.81 per token – an amount near $420 million.
However, Japan’s financial regulator, the Financial Services Agency (FSA), soon stepped in to inspect the platform’s security measures and its fiscal capacity for refunding victims of the heist. As the investigation continued, customers of the exchange also filed class action lawsuits demanding that Coincheck expedite reimbursement of their losses.
Coincheck’s plan for reimbursements comes amid a wider effort by the FSA to more closely scrutinize cryptocurrency exchanges in Japan to bring about improved services and security following the hack.
As reported by CoinDesk, following an extensive investigation of the remaining unlicensed exchanges in Japan, the FSA has issued administrative penalties to seven trading platforms today, two of which are ordered to suspend services, while all are mandated to submit a written plan for security improvements by March 22.
Coincheck CEO image via CoinDesk archive
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.