Bitcoin, Cryptocurrency And Blockchain News

Coincheck Faces Third Lawsuit for Almost 82 Million Yen


Japanese exchange Coincheck is being sued for the third time after its hacking incident in January 2018. The recent lawsuit has been filed by Japanese law firm ITJ for almost $771,000 (82 million Yen), according to Cointelegraph. ITJ posted an official notice on their website regarding the situation.

After the Coincheck incident, consultation of those who can not move the virtual currency from the Coincheck has increased sharply.
In our office, if there is a decline in the virtual currency amount until the actual remittance after instructing remittance to the current check, we will consider damages and request damages against the Coincheck.

ITJ explained that 15 of its plaintiffs were unable to withdraw funds from the exchange, due to which they suffered losses. Simply put, cryptocurrencys’ values kept changing and users were unable to make transactions throughout the entire period. The statement also included formulas to explain how the payment process would work: “cryptocurrencies’ price before the incident minus the price that plaintiffs actually could withdraw”.

523 million NEM (worth $534 million) were stolen from Coincheck in the cyber attack. NEM were kept in a hot wallet while other coins were stored in a multisig wallet, which is why only the former cryptocurrency was lost. After the incident, Japanese Financial Services  Agency (FSA) gave Coincheck “business improvement orders”, along with six other exchanges. Coincheck responded to the orders on the website, “We vow to take action on all of the points listed in the business improvement order handed down from the Financial Services Agency as we work towards resuming normal business operations.”

In February, ten users filed a lawsuit against Coincheck, followed by another in March. 132 crypto users joined together for the second lawsuit for almost 228 mln yen ($2 million). Finally, the exchange announced that it would allow customers to restore funds using a rate of 88.549 Japanese yen/stolen NEM starting from March 13th.