Coincheck To Be Sued By Traders

A group of traders will file a lawsuit against cryptocurrency exchange Coincheck  
13 February 2018   800

Ten cryptocurrency traders will file a lawsuit at the Tokyo District Court on Thursday, Feb. 15 over last month’s theft of $530 million (£382 million) in digital money.

After the last month’s hack, the crypto exchange lost $530 mln in NEM and had frozen all withdrawals.

According to the trader's lawyer, Hiromu Mochizuki, they will claim Coincheck to allow them to withdraw cryptocurrencies to wallets outside the exchange. The group of traders may launch a second lawsuit at the end of the month to claim for damages over the heist.

From Tuesday, Coincheck resumed yen-withdrawals. On Friday, Coincheck representatives said that it would allow customers to withdraw yen after confirming the integrity of its system security. Also, the exchange would keep restrictions on cryptocurrency withdrawals until it could guarantee the secure resumption of its operations.

NEM Foundation to be Almost Bankrupt

Newly elected president believes 160 000 000 XEM could fix the situation
31 January 2019   607

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.