After Hack, Coincheck Exchange Handles $373 Million In Withdraws – In One Day
Yesterday, Japan’s Coincheck Exchange reinstated withdraws and investors rushed to take their money out of the recently hacked exchange.
According to Coindesk, $373 million was withdrawn as the exchange partially reopened after being hacked last month. Hackers stole $500 million-worth of NEM tokens.
The exchange hopes to normalize and recover from the hack. However, dramatic withdraw numbers could indicate that its customer base has little confidence. This may mean problems as Coincheck attempts to recover from the hacking setback.
An additional cause for concern for Coincheck is recent scrutiny from Japan’s financial regulator, the Financial Services Agency (FSA). The group conducted an on-site check after the major hack to ensure that the firm’s security measures were strong enough to protect the remaining funds on the exchange.
After the check, the FSA announced that Coincheck, along with 15 other crypto exchanges, hasn’t obtained full licensing as a result of ongoing security concerns.
Unfortunately, there is no timeline for when or how Coincheck will compensate victims of last month’s hack at this time. They do, however, plan to continue operating per chief operating officer Yusuke Otsuka.