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   1339

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.

Binance to Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   86

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.
 

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.