Coincheck compensates kidnapped 523 million NEM to all affected users

Coincheck compensates kidnapped 523 million NEM to all affected users

Japanese cryptocurrency exchange Coincheck announced on Saturday, January 27 that it would pay compensation to all 260.000 its users who have become victim of a hacker attack, which was stolen 523 million NEM in the amount of about 534 million dollars.

As it turned out after the break, the funds stored in the wallet with one signature, which indicates a relatively low level of security.

The company confirmed its intention to return the stolen money to the affected users. According to the statement, compensation will be paid at the expense of own capital of the exchange.

The company still has not determined exactly when and at what rate will be compensated. The most likely options is the payout at the average exchange rate from the time of the theft and prior to the announcement of compensation, which is approximately 88,549 yen for every coin NEM.

Coincheck indicated that they rely on the exchange rate Zaif, another Japanese exchange, where the volume of trading in the NEM exceeds the volume of Coincheck.

In addition, Coincheck again confirmed their intention to stay in business and not to declare bankruptcy, saying:

We remain in business and continue the process of filing with the financial services Agency to become a registered cryptocurrency exchange.

The reaction of the community

This incident constitutes the biggest theft in the history of cryptocurrency, as it exceeds even the infamous story of Mt. Gox, which also took place in Japan. Probably, this fact is largely favored that the local community responded to the incident without much panic.

And it affected the numbers, as the Japanese cryptocurrency markets are growing today.

According to Coinmarketcap, NEM also responded positively to the news and the price of the cryptocurrency has grown by almost 30%.

Despite the fact that the neglect of Coincheck safety rules is the main cause of the incident, the stock exchange has the support of many local leaders of the cryptocurrency community. For the most part, this is because the exchange has decided to compensate the stolen money.

Meanwhile, the team NEM has announced that it is working on an automated system that will track the stolen coins and mark all the addresses that will be translated the money. This will allow any cryptocurrency exchanger to make the black list of account hackers and will not allow them to cash out these funds.

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