Regulators Probe Coincheck’s Hack Compensation Claims

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Inspectors from Japan’s Financial Services Agency had gone on-site Coincheck’s facilities for inspection following the hack it recently experienced.

According to Nikkei, the inspection was to determine whether or not the firm does have the financial capability to shoulder the compensation it owes its investors who had lost their funds in the $530-million breach. As much as 500 million NEM tokens were stolen from some 260,000 users of the firm on January 26.

The following day, January 27, Coicheck reassured its investors that they will be issuing a compensation of $.081 for every stolen token. The total payout is expected to amount to $420 million. On January 28, the FSA came into the picture and gave the administrative order to Coincheck. Results from the investigation as to the cause of the hack, as well as the company’s plans to improve its security features, are expected on February 13.

This on-site expectation is the first instance in the country relating to the FSA dealing with cryptocurrency transactions as well as the protection afforded to the investors.

Further reports indicate that the FSA had already ordered Coincheck to fix its security loophole, otherwise it will not be given approval as an exchange.

 

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