NEM Hack Victims to be Compensated by Coincheck Next Week

NEM Hack Victims to be Compensated by Coincheck Next Week

NEM Hack Victims to be Compensated by Coincheck Next Week

Coincheck - the Japanese digital currency exchanging platform has initiated to refund users and traders that were touched by the famous hack of $534 million worth of NEM in January 26, while simultaneously giving the opportunity of selling specific cryptos and withdrawals - based on the press releases that were set out on on the exchanges website. Coincheck said that the refund will directly appear in the account of all those customers who held the tokens at the close of 26th of Jan, Japan time.

The stolen money that has been converted to bitcoin is being kept at several e-wallets, with hundreds of millions of yen in each, the person close to investigation said, adding that individuals involved in the NEM heist are preparing to change the currency into cash at exchanges outside Japan.

Coincheck has investigated the heist and with a panel of experts said in a blog post published on Thursday last week said they believed hackers managed to infiltrate an employee's terminal and steal the secret NEM key which they then used to transfer the tokens off the exchange.

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Coincheck imposed curbs on trading and withdrawal of some cryptocurrencies including Bitcoin on its exchange after the hack in January. The exchange further stated that it will take more time to resume services for other assets.

Local news outlet the Nikkei Asian Review wrote today, March 12, that virus-infected emails were sent to several members of Coincheck staff weeks before the attack, perhaps opening the employee email system to allow the hackers to steal the private key. Compensation will be paid in Japanese yen, at the rate of around 88.5 yen (around $0.83) to one NEM coin.

The perceived lack of security measures also sparked the FSA's probe into the company's system.

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