A recent string of hacks have plagued exchanges, but none worse than Japanese-based crypto exchange, Coincheck. Earlier this year, Coincheck was hacked, with thieves making off with over 500 million NEM in the process.
After Coincheck acknowledged the hack did indeed take place and confirmed the losses, the exchange pledged to refund all users of lost funds. Coincheck is now following through on that promise, and will begin refunding users starting next week. Coincheck is also expected to resume trading soon, as well.
The announcement came via press conference held by Coincheck CEO Koichiro Wada and COO Yusuke Otsuka. They said in a statement that further details about the refund process will be released in the coming days, and added that they would be bolstering their cyber-security efforts:
“In addition to strengthening in-house monitoring as countermeasures against unauthorized access from the outside as in this case, we will be carrying out security monitoring by external expert institutions concerning financial systems security and cyber security,”
The news of Coincheck refunding users has caused an 8% increase in NEM’s price over the last 24 hours.
The Coincheck hack was especially significant as it was the spark that ignited Japan’s Financial Services Agency to begin taking a closer look at cryptocurrency exchanges and possibly regulation in the country. The FSA to date has issued penalties to seven different exchanges, all of which are required to submit written plans outlining steps being taken to improve security after the fallout of the Coincheck hack.