Coincheck seeks investors to acquire funds after the hack

Coincheck is currently in talks with several investors to procure repayment funds after the hack, hopes to regain public trust
27 February 2018   531

The resounding scandal around Coincheck hack has been on the news since the beginning of the year with lawsuits and statements from both sides. The clients are still waiting for the cryptocurrency withdrawals to resume like it happened with fiat, it seems unlikely. The official statement is that Coincheck will return the money to the clients, the returns will be performed in fiat with the exchange rates still unknown.

But the prospects are looking good, it seems, because Coincheck is currently in talks with several investors to acquire the funds for the refunds needed. An informed inside source stated that there have emerged several possible partners and even an investment fund. These resources will allow the company to return the trust of the clients affected by the hack, or so they hope.

Already a month has passed since the hacking, and the prospects of Coincheck compensating their 260,00 customers are looking bleak. While the fiat withdrawals have resumed on February 13, the crypto assets are still locked. Coincheck promises to allocate nearly 46 million yen for these refunds, but some customers are unhappy, to say the least, with such a turn of events. The lawsuits are currently in progress with victims demanding the return of their assets, so the possible tie-ins with investors to repay the customers seems to be the only way upward for the exchange from the long downward spiral in terms of the client base's trust.

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   153

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.
 

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.