Coincheck to Pay $400M to Affected Customers

On Friday, 26th of January, $400 000 000 worth XEM was stolen from the exchange
29 January 2018   943

Representatives of the Japanese cryptocurrency exchange Coincheck published an official statement, which reports on the company's readiness to reimburse the losses of users at its own expense.

According to an official statement, Tokyo exchange will pay $400M worth refund to 260k affected users , "at the rate of 88,549 yens ($ 0.81) for each coin."

On Friday, January 26, one of the largest crypto-exchange in Japan Coincheck suspended operations with the digital currency NEM, and then with the other altcoins. Payments with bank cards and Pay Easy were also suspended. Soon on the same day, representatives of Coincheck confirmed information about the theft of 58 billion yen ($ 533 million) in the NEM (XEM) cryptocurrency.

According to Bloomberg, Coincheck management is currently coordinating the terms and mechanism for paying compensation to users.

The timing of the reimbursement and the application process are currently under consideration. The source of the refunded money is being carried out using our own capital.

Coincheck Statement

After a while there was a new information about the current situation from the NEM Foundation.

As Jeff McDonald, the organization's vice president, said, the NEM Foundation "is doing everything possible to help Coincheck, and to protect the NEM community." Also, according to him, the organization has all the necessary information about stolen funds, which is recorded in the detachment.

We also have a full account for all of Coincheck’s lost XEM on the blockchain. At this time, the hacker has not moved any of the funds to any exchange, nor to any personal accounts of NEM community members.

Jeff McDonald

Vice President, NEM

Also it is reported in the blog that is working on creating an "automated labeling system" that will be ready in the next 24-48 hours. This system will track the funds stolen from the Coincheck exchange and "tag" each account on which transactions with these coins were conducted. Representatives of NEM already advise the stock exchange on the issues of working with the new system.

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   67

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.