Bitcoin, Cryptocurrency And Blockchain News

Coincheck Considers Capital Tie-up Following a Huge Cryptocurrency Heist


Jiji Press, citing an anonymous source within the company, reported,

Coincheck is reportedly considering a capital tie-up to strengthen its financial base and regain trust following a massive cryptocurrency theft from the exchange in a hacking incident about a month ago.

According to the report, there are several willing partners inclusive of an investment fund.

A cryptocurrency official talking to Bitcoin News said that Coincheck’s customer base of over one million would attract lots of willing partners. There are concerns that the exchange is on a downward spiral as it struggles to compensate the victims of the heist. “Investing in the company involves lots of risks at the moment,” said the official. Coincheck has however come out to reassure its customers and possible investors of its safety. “Coincheck is eager to continue with its business and the company is strengthening its computer security system and information disclosure policy to safeguard the company from possible heists in the future,” said the anonymous Coincheck official.

Pressure From Victim Groups

It is about one month since the infamous hack and the company is under immense pressure to compensate about 260,000 clients, and resume normal business. Although the company announced a return of Yen withdrawals on February 13th, cryptocurrency withdrawals are yet to resume. Additionally, Coincheck promised to repay the victims in Yen and not in cryptocurrencies. Following the announcement, seven Coincheck customers have gone to Tokyo district court seeking orders to compel the exchange company to return their cryptocurrencies and not Japanese yen.

Earlier in February, Coincheck victims met in Tokyo to chart the way forward. The meeting which was attended by about 35 victims and numerous lawyers, resulting in the formation of a victim association which is pressuring the company for quick compensation using cryptocurrencies. In the meantime, Tokyo police authorities are continuing with the investigations which are also a source of pressure on the exchange company. According to the anonymous source within the company, the prospect of partners coming in at this time will help the exchange to deal with the growing pressure, and avoid a massive customer loss.

Do you think Coincheck should seek partners at this time? Let us know your thoughts in the comments section.