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Coincheck to Repay Hack Victims’ XEM Balances at 81 U.S. Cents Each

Coincheck to Repay Hack Victims' XEM Balances at 81 U.S. Cents Each

Major Japanese cryptocurrency exchange Coincheck has announced that it will reimburse the accounts of the 260,000 customers who lost XEM tokens in a recent hack at a rate of roughly 81 U.S. cents per unit. As of this writing, XEM is trading for approximately 89 U.S. cents, having recovered slightly from its dip in the wake of the hack. The announcement comes amid concerns expressed by Japan’s Financial Services Agency (FSA) that it is uncertain as to whether Coincheck possesses sufficient funds in order to conduct the reimbursement.

Also Read: Japanese Crypto Exchanges Strengthen Self-Regulation Following Coincheck Hack

Coincheck Announces Reparations Policy

Coincheck to Repay Hack Victims' XEM Balances at 81 U.S. Cents EachOn the 26th of January, a total of 523,000,000 XEM was “illicitly transfer[ed]” following a hack sustained by Coincheck. The exchange has announced that the approximately 260,000 affected users “will be repaid in JPY via Coincheck Wallet” at a rate of “88.549 JPY” for each coin held (approximately 81 US cents each).

The price has been calculated “using the weighted average of turnover […] during the period beginning with the suspension of [the] sale of NEM on the Coincheck platform and ending with the release of this notice” (01/26/2018 12:09 JST – 01/27/2018 23:00 JST) using Zaif’s XEM/JPY pairing. Based upon the current price listed on Coinmarketcap of approximately 89 U.S. cents, the reimbursement will comprise a loss of 9% for affected users. The exact date for the distribution of the reparations has not yet been decided.

FSA Expresses Concerns Regarding Coincheck’s Ability to Repay Stolen XEM Balances with JPY

Coincheck to Repay Hack Victims' XEM Balances at 81 U.S. Cents EachCoincheck has stated that it “will do [its] utmost to enact meaningful changes to [its] platform” following the company receiving “an order to improve business operations from the [FSA].”

The FSA has demanded that Coincheck conduct an “investigation of the facts and causes surrounding the [hack], a “strengthening of current measures to manage system risk,” in addition to providing “proper support of [its] customers.” The FSA has requested a written report addressing the aforementioned concerns before Tuesday, February 13, 2018. The FSA has also recently expressed uncertainty as to whether or not Coincheck possesses the funds required to conduct its planned reparations.

What is your reaction to Coincheck’s proposed repatriations policy? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Coincheck


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