Reeling from government reprimands over lax standards after a theft of ¥58 billion ($530 million) in digital money, cryptocurrency exchange Coincheck Inc. said it would from Monday start repaying customers affected by the heist.
Coincheck, based in Tokyo, spent ¥46.3 billion ($435 million) to compensate 260,000 customers who had kept a digital currency called NEM at Coincheck.
The executives, on the 26th of January, confirmed popular rumours of a significant theft of about 526 million NEM tokens, which was approximately $530 million at the time, which has since become the largest cryptocurrency robbery of all time. Based on the compensation plan, users will see a combined payout of $420 million. In the latest blog post dated March 12, Coincheck has announced that it has started refunding its users at the rate of 88.549 Japanese yen (or $0.83) per NEM token stolen. In addition to the refund, the exchange has also resumed partial trading on its platforms thereby allowing the customers to withdraw their crypto holdings for Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH).
While the company tries to get its business functioning back to normal, another report today indicates that Coincheck may have been compromised weeks before the heist happened.
The hack resulted in a massive amount of NEM coins being stolen.
Coincheck, one of the biggest cryptocurrency exchanges in Japan, was hacked in January earlier this year.
According to Nikkei Asia Review, the cause of the breach, as identified by Coincheck previously, was a form of malware that had infected the company's internal computer systems.
The perceived lack of security measures also sparked the FSA's probe into the company's system.