Coincheck distributed ¥46.6 billion to 260,000 customers today after completing refunds for the hack that struck the Tokyo exchange in late January. The payout returned 88.549 yen ($0.83) per XEM toke
Coincheck distributed ¥46.6 billion to 260,000 customers today after completing refunds for the hack that struck the Tokyo exchange in late January. The payout returned 88.549 yen ($0.83) per XEM token stolen. The exchange announced the refund rate in a blog post yesterday and said it would cover the full $440 million from company funds—absorbing the loss rather than distributing it to users.
The refund announcement sent NEM's price up 19 percent to $0.45. Traders bought $140 million worth of the token over 24 hours.
On January 26, thieves stole 523 million XEM worth roughly $530 million—the largest hack of its kind. Japan's Financial Services Agency found inadequate security at the exchange responsible for the breach. After inspecting Coincheck, the FSA issued improvement orders and demanded the company conduct a drastic review of its management team.
Coincheck faced pressure from multiple directions. Two class-action lawsuits landed against the exchange. Seven investors sought to recover $183,000. A second group of 132 investors demanded $2.1 million. These claims, combined with regulatory orders, forced the company to settle by absorbing losses.
The exchange reopened for trading today after a month-long closure during which it upgraded security systems. Coincheck spokesman Yosuke Imai said "procedures have been completed with the accounts of all 260,000 customers." The company's decision to cover losses addressed both the lawsuits and the FSA's original concerns about customer protection.
The hack prompted broader regulatory action. The FSA suspended two other exchanges—FSHO in Kanagawa and Bit Station in Nagoya—for a month. Bit Station withdrew its application to become a registered exchange. The enforcement reflected alarm over security standards across the industry.
