Coincheck resumes yen withdrawals after cryptocurrency theft

New raids on Japan crypto exchanges after Coincheck hack

The Coincheck Inc. exchange, which had about 58 billion yen ($535.03 million) worth of NEM cryptocurrency stolen by hackers, resumed allowing clients to withdraw Japanese yen on February 13.

Digital currency exchange operator Coincheck resumed yen withdrawals for its users on Tuesday, following weeks of suspension triggered by the theft of 58 billion yen (US$533 million) worth of digital money.

According to posts on Twitter, Coincheck started allowing the withdrawal of yen earlier today.

In a statement on the exchange's website, the company revealed that within the first day that the service was restored, customers had withdrawn about 40.1 billion yen, worth over $372 million at press time.

On Tuesday Coincheck allowed clients to withdraw their JPY funds, but crypto withdrawals are still frozen, pending confirmation of the integrity of its security system.

Coincheck promised to use its own money to reimburse the 260,000 customers affected by the theft, adding that the amount it is paying back covers nearly 90 percent of the stolen NEM coins' worth.

The claim will be made with the Tokyo District Court over Coincheck's freezing of cryptocurrency withdrawals, Hiromu Mochizuki, a lawyer representing the plaintiffs, told Reuters.

The agency is set to ask for additional reports from the exchange if it deems Coincheck's plan is not up to scratch.

A Tokyo-based cryptocurrency exchange that was hacked last month will submit a plan to step up security to authorities.

It has also emerged that ten of the exchange's customers are preparing to sue the exchange for the ability to withdraw their cryptocurrency holdings from the platform.

The Japan Times quotes Japanese Financial Minister Taro Aso: "Through our on-site inspections, we will make sure that customers are protected".

Coincheck is one of the 16 operators of virtual currency exchanges awaiting regulatory approval.

Additionally, the agency formally issued a warning the Macau-based Blockchain Laboratory stop offering cryptocurrency exchange services in the country, at least until it had registered with the FSA.



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