Coincheck announces the refund procedure

Initial compensation plan holds up with the amount of ¥88 per NEM token
12 March 2018   1233

Today on March 12 Coincheck starts to pay compensations to those who lost funds in the hack of January, 26. According to the blog post the japanese exchange will keep the initial refund rate at 88.549 JPY : 1 NEM directly into the customers' accounts. It should be noted that the plan also considers the overall compensation volume of $420 mln.

Along with the reimbursement process, the exchange relaunches the withdrawal function and the trade of the following cryptocurrencies: ETH, ETC. XRP. LTC, BCH and BTC. As for the other assets, it will a longer time to resume the respective services. The update comes after the press conference where it was announced that the compensation would start this week.

Simultaneously, Nikkei Asia Review acquired new details of the events that were precursor to the hack. These details shed light to the origins of the heist. According to the article, the attackers sent emails with a malware to Coincheck's employee in early January. After the sender's address was clicked, the computer was infected with a virus that allowed an outside operation. With this ability, hackers collected private keys to large amounts of NEM.

Japanese regulator FSA requested Coincheck to submit a written plan on system and its security improvements by March, 22.

NEM Foundation to be Almost Bankrupt

Newly elected president believes 160 000 000 XEM could fix the situation
31 January 2019   1148

The NEM Foundation, a community-sponsored nonprofit organization to promote the blockchain of NEM is planning a massive downsizing of its staff, which currently has 150 people. This is reported by CoinDesk.

It is assumed that these steps are associated with a significant reduction in the budget and the forthcoming restructuring of the organization based in Singapore.

Thus, the newly elected president of the NEM Foundation, Alex Tinsmen, announced plans to send a request to the NEM public fund for the allocation of 160 million XEM tokens (about $ 7.5 million), which should help save the organization from bankruptcy.

Basically we realized we had a month to operate, due to the mismanagement of the previous governance council.
 

Alex Tinsman

President, NEM Foundation

After the request for the allocation of the specified amount is made officially, all 202 members of the fund will be invited to vote for it. The scale of the cuts will depend on the amount of funding approved, Tinsman added.

According to her, the NEM Foundation spent about 80 million XEM from December 2017 to January 2019 primarily on marketing.

We’ve reduced marketing activities because it doesn’t make sense to market a product [Catapult] that isn’t out yet.
 

Alex Tinsman

President, NEM Foundation

In particular, Alex Tinman refers to the blockchain engine Catapult. Its full-featured release was announced back in May last year.

NEM developers and users who wish to remain anonymous also state that the organization’s previous president, Lon Wong, used his position to promote questionable ICOs. As a result of these actions, he allegedly undermined community confidence.

According to Tinsman, a very strict budget policy will be respected under the roadmap for 2019. It is assumed that each team will be allocated a limited budget, there will also be requirements for public disclosure of documentation describing the tools they develop for the NEM ecosystem.

It is also planned to monetize the activities of the NEM Foundation by educating corporate users and affiliate marketing. This is expected to help reduce the organization’s dependence on community funding.