Japanese cryptocurrency exchange Coincheck recently announced that it will start paying customers who were affected by the $530 million NEM theft in January, as soon as next week. Even while details were not provided, speaking at a press conference today, Koichiro Wada who is Coincheck's CEO and operations chief Yusuke Otsuka said they will provide more information in the next days.
This is exactly the same rate which was priorly decided as a part of its initial compensation plan. A total of $530 million in NEM tokens were lost, following which Japan's financial watchdog The Financial Service Agency (FSA) started taking quick action by raiding 15 other cryptocurrency exchanges that were missing final registrations with the regulatory agency.
According to the person, several Coincheck employees received English-language emails appearing to be an internal message from a colleague in early January. In addition to the refund, the exchange has also resumed partial trading on its platforms thereby allowing the customers to withdraw their crypto holdings for Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH). The five exchanges ordered to improve internal controls are Tech Bureau, GMO Coin, Mister Exchange, Bicrements, and Coincheck, reports the Financial Times.
Japan's financial regulator, the Financial Services Agency (FSA), stated it would enhance its analysis of local exchanges in the days right after the robbery with on-site examinations.
Subsequently, the report said, the hackers were able to gather private keys to large amounts of NEM weeks before the actual heist, during which time Coincheck had no proper tools to detect such communication between itself and external servers.
In the after theft drill, some of the NEM tokens traced to a Japanese NEM exchange Zaif as well as to a Canadian cryptocurrency exchange.