Coincheck Hack Triggers Japanese Authorities to Conduct Checks at Cryptocurrency Exchanges

The hack of Coincheck has definitely been a huge blow for the cryptocurrency market. This hack led to the loss of around $530 million in cryptocurrencies, which were stolen by attackers from Coincheck. As Coincheck is one of the biggest cryptocurrency exchanges in the country, the news managed to create a lot of interest.

Actually, the hack is considered to be so serious that Japanese authorities have announced their intentions to investigate all cryptocurrency exchanges that operate in the country. Authorities want to find out if exchanges have complied with all the proper security measures. At the same time, Japanese authorities have asked Coincheck to raise its standards.

Reuters reported that the Financial Services Agency has ordered Coincheck to make some improvements to its operations. The accounts on Coincheck that were affected by this hack included accounts that stored cryptocurrency NEM in so-called hot wallets, which are considered to be less secure than cold wallets.

Coincheck will repay those affected

After the hack, Coincheck announced that it would repay 90% of those affected, but the company provided no other details on when and how this should happen. The Financial Services Authority has not confirmed for the moment if the cryptocurrency exchange has enough funds to be able to pay back those who were affected by the hack.

Coincheck will also have to submit a report to the Financial Services Agency related to how the hack occurred and which measures were taken to prevent similar situations in the future. The agency has given the company until February 13 to provide this report.

The Financial Services Authority has also revealed that it will start conducting some hearings with other cryptocurrency exchanges. If the agency will find some issues with their security, the agency said it will conduct some onsite inspections and see what are the concerns.