Things didn’t look so bright this past Friday, especially for the Tokyo-basked exchange Coincheck. It was reported on Friday that 500 million NEM coins were unlawfully transferred from the exchange. Coincheck is still trying to figure out how this could have happened.
In response to the hack, Coincheck is repaying their victims straight out of its own pocket. In statement launched by Coincheck, they have stated that they will compensate 260,000 of its customers who were infected by the hack which saw $400 worth of NEM coins vanish from the exchange.
Japan hasn’t experienced such a heist since the Mt. Gox cryptocurrency exchange was hacked backed in 2014. That heist saw over 850,000 bitcoins stolen from the now closed down exchange. In that case, they were able to recover 200,000 bitcoins, but a lot of people still walked away empty handed. Some believe that it was that heist that ultimately led to the demise of the exchange. One has to wonder how this will affect Coincheck.
Naturally, since Friday investors in Japan have been on edge. Cryptocurrencies from around the globe were operating in the red for most of Friday. Things seemed to regain balance by Saturday according to CoinMarketCap, as most coins were going up against the U.S. Dollar.
In an interview with Business Insider, John Spallanzani of Miller Value Partners stated. “Since there is no FDIC or SIPC insurance for crypto the fact that they are ‘trying’ to make account holder’s whole is a good sign,”
In recent months, despite all the big players smack regulations of cryptocurrencies, the Japanese government has outright refused. One has to wonder if incidents like this will change their mind. In an attempt to prevent crimes such as this, South Korea has put many regulations. It has stabilized their market but has definitely affected their position of being the top player. One has to wonder if Japan will follow in those footsteps.