The January hacking incident, where about $530 million was stolen, seems to have dealt a huge blow to the Japanese exchange, Coincheck. As such, it is still in recovery mode and has now set out to reimburse the victims of the hack, who lost their funds.
Specific Plans in Place
The cryptocurrency exchange hinted at this development in a blog post on March 12th, saying it would make refunds to all users at the exchange rate of 88.549 Japanese yen per each stolen NEM. This is basically the same amount that had been proposed in the initial compensation plan. It will apply to all accounts of users who held the token as of Jan 26th. By following this initial compensation plan therefore, affected customers will receive a combined payout of up to $420 million.
Is Coincheck Keeping its Promise?
The update given today is a result of Thursday’s press conference, at which the COO and the CEO announced plans for compensation, that is to start this week. This was in response to the many class action lawsuits that the firm had received, as well as the probe made by the FSA over the ability of the firm to issue refunds to its customers.
Apart from this development, Coincheck also took this chance to make an announcement about their plans to restart withdrawals and at the same time trade in several other currencies, which include ETC, ETH, XRP,BCH,LTC and BTC. It also exuded confidence that it will be making a comeback with regards to other services.
What Really Happened During the Hacking?
The hack that happened in January took the crypto world by surprise, especially considering its magnitude. According to Nikkei Asia Review, the breach seems to have been caused by a type of malware that greatly affected the internal computer systems of the company.
Similarly, according to police investigations, anonymous sources prove that the hackers first sent phishing emails to the employees of Coincheck at the start of January. When the staff clicked on the emails, the virus was spread, and this was the start of the hacking process.
The hacking seems to have been catalyzed by the ability of the hackers to gather several private keys to large amounts of NEM, even before the actual heist happened.
Image Credit: Deposit Photos
What do you think about Coincheck’s move to refund customers affected by the hacking? Do you think this will help restore confidence in the exchange? Let us know your views in the comments section below.