{"id":6497,"date":"2018-01-29T14:37:17","date_gmt":"2018-01-29T14:37:17","guid":{"rendered":"https:\/\/ethereumworldnews.com\/?p=6497"},"modified":"2018-01-29T14:37:17","modified_gmt":"2018-01-29T14:37:17","slug":"japans-financial-watchdog-orders-coincheck-improvements-following-500-million-hack","status":"publish","type":"post","link":"https:\/\/ethereumworldnews.com\/japans-financial-watchdog-orders-coincheck-improvements-following-500-million-hack\/","title":{"rendered":"Japan\u2019s Financial Watchdog Orders Coincheck Improvements Following $500 Million Hack"},"content":{"rendered":"
Following the hack of Japanese digital currency exchange Coincheck, the country\u2019s financial watchdog has sent the exchange a business improvement order to ensure the industry\u2019s security.<\/p>\n
Last Friday, it was reported that Coincheck had halted client withdrawals<\/span><\/a> without any explanation, giving rise to speculation that the exchange had been hacked. It was later revealed that over $500 million<\/span><\/a> worth of XEM – the token for the NEM network – had been stolen by hackers, resulting in the biggest crypto theft in history.<\/p>\n Now, according to an update<\/span><\/a> from Coincheck, Japan\u2019s Financial Services Agency (FSA), has ordered improvements. The exchange is to submit a report to the watchdog by the 13th February on the hack and measures to prevent a recurrence. The watchdog is also considering an on-site inspection and is expected to inspect all cryptocurrency exchanges.<\/p>\n Since the news of the hack came to light Coincheck has vowed to reimburse customers their lost money; however, Japanese authorities have raised questions<\/span><\/a> as to whether the exchange has enough funds to cover the theft. According to a report from the Financial Times, Coincheck said it would reimburse 260,000 customers, however, it has yet to demonstrate how and when it plans to do this. The FSA claim that the exchange only has balance sheet details for September and that it is seeking more up-to-date information.<\/p>\n \u201cI hear from the FSA they will put maximum effort into helping Coincheck\u2019s customers, including the return of their money,\u201d said Yoshihide Suga, Japan\u2019s chief cabinet secretary. \u201cI think the FSA will be making sure Coincheck handles this in line with the law and its contractual obligations.\u201d<\/p>\n