Japan's bitcoin wallet Coincheck restarts yen trading after massive hack
(FILE) Pedestrians walk past a Bitcoin currency poster at the entrance of an electronics retail store in central Tokyo, Japan, Jun. 1, 2017 (reissued Jan. 26, 2018). EPA-EFE/FRANCK ROBICHON
(FILE) Japanese reporters wait outside the building hosting cryptocurrency exchange Coincheck Inc.'s offices in Tokyo, Japan, Feb. 2, 2018. EPA-EFE/FRANCK ROBICHON
(FILE) A pedestrian runs past the building where Japan's Coincheck Inc. company is located in Tokyo, Japan, Jan. 27, 2018. EPA-EFE/CHRISTOPHER JUE
Tokyo, Feb 13 (efe-epa).- Coincheck, the Japanese bitcoin wallet and cryptocurrency exchange service, Tuesday restarted operations after a two week suspension of activities following a massive hacking.
This virtual currency market, one of the largest in Japan, had frozen all trading in yen due to liquidity problems after the cyber attack, in which hundreds of millions of NEM cryptocurrencies worth 58 billion yen ($536.5 million) disappeared.
Coincheck announced the restart of operations on its website, warning that they will be restricted due to the large number of demands for withdrawal of current currencies and noted that the service is working towards a return to normalcy.
Coincheck is also expected to present a plan on measures to improve its security and close the gaps that facilitated the hacking, including the storing of clients' funds in "cold portfolios" or not connected to the Japanese network and therefore safe from computer hacks.
Japanese authorities continue to investigate the incident and have also commissioned an experts panel to analyze Coincheck's security systems and other Japanese bitcoin operators to prevent similar attacks.
The company has promised to reimburse losses suffered by 260,000 investors however it has not specified any date.
The victims, for their part, are planning to file a class action lawsuit in a Tokyo court against the company this week demanding compensation against what they consider to be the operator's irresponsibility, a group of Coincheck investors said on Twitter.