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Hacked exchange Coincheck faces lawsuit from users demanding release of cryptocurrencies

By midian182
Feb 13, 2018
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  1. Back in January one of the biggest hacks on a cryptocurrency exchange took place when Japanese firm Coincheck had around 530 million dollars’ worth of NEM coins stolen. Now, ten traders are filing a lawsuit against the company over the incident.

    Reuters reports that the claim, which will be filed at the Tokyo district court on Thursday, concerns Coincheck’s decision to suspend withdrawals for all yen and cryptocurrencies other than bitcoin following the hack.

    The suit requests that Coincheck allows the traders to withdraw their virtual currencies from the exchange and place them in wallets. Hiromu Mochizuki, a lawyer representing the plaintiffs, said that the group might follow up with a second lawsuit later this month related to damages arising from the hack.

    According to posts on Twitter, Coincheck started allowing the withdrawal of yen earlier today. Last week, the company said it would resume yen withdrawals after “[completing] the technical safety confirmation with the cooperation of external experts.” Restrictions on cryptocurrency withdrawals will remain in place until it can guarantee the secure resumption of its operations.

    Coincheck promised to use its own money to reimburse the 260,000 customers affected by the theft, adding that the amount it is paying back covers almost 90 percent of the stolen NEM coins’ worth.

    Following the Coincheck incident, it was reported that Italian exchange BitGrail had lost $170 million worth of Nano tokens. In this case, however, owner Francesco Firano tweeted that there was no way to reimburse customers fully.

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