Japan to punish hacked cryptocurrency exchange Coincheck

Firm lost $534 milion worth of NEM coins to hackers

epa06477260 Members of the media gather in front of the building where Japan's Coincheck Inc. company is located in Tokyo, Japan, 27 January 2018. Cryptocurrency exchange company Coincheck Inc. confirmed that approximately 58 billion yen (534 million US dollar) in virtual currency holdings disappeared from its wallets this past Friday due to what it appears to be a hacking heist. Coincheck stated this crypto hack loss is larger than Mt. Gox., which would make it the most sizable hack in the history of cryptocurrency. EPA/CHRISTOPHER JUE

Journalists gather in front of Coincheck's offices in Tokyo. Regulators are set to fine the company after $534 million worth of coins were lost to hackers. Christopher Jue / EPA

Reuters

Jan 29, 2018

Japan's financial regulator plans to slap an administrative punishment on cyrptocurrency exchange operator Coincheck on Monday, the top government spokesman said, after the firm lost ¥58 billion ($534 million) worth of NEM coins to hackers.

Tokyo-based Coincheck on Friday suspended trading in all cryptocurrencies except bitcoin after the theft of NEM coins in one of the biggest-ever losses of digital money to hackers. It said on Sunday it would return about 90 per cent with internal funds, though it has yet to figure out how or when.

The Financial Services Agency (FSA) will issue a business improvement order to Coincheck later on Monday, chief cabinet secretary Yoshihide Suga told a news conference.