Lawsuit To Be Filed Against Hacked Exchange Coincheck For Freezing Funds

February 14, 2018 4:02 pm Published by

Reuters reports 10 cryptocurrency traders plan to file a lawsuit Feb. 15 against crypto exchange Coincheck after the company froze crypto withdrawals, Cointelegraph said.

Following a hack last month, the Japan-based exchange had frozen all withdrawals after they lost $530 million in NEM, the report said.

The lawyer representing the 10 traders, Hiromu Mochizuki, told Reuters the lawsuit will ask Coincheck to allow traders to withdraw their crypto into a wallet independent of the exchange, warning a second lawsuit over damages resulting from the hack may soon follow, the report said.

Mochizuki announced Tuesday since Coincheck began allowing yen withdrawals, one of the four claims has been settled, Cointelegraph reported.

Coincheck announced the day after the hack, they planned on refunding money to their customers affected by the loss of NEM, the report said.

Meanwhile, Cointelegraph reported, Japan’s Financial Services Agency (FSA) conducted an inspection of Coincheck Feb. 2, prior to the Feb. 13 deadline for the exchange to submit a report on the hack and how they will change their security to prevent a similar event in the future, the report said. All crypto exchanges in Japan must also now submit a risk management report to the FSA., Jack Durschlag

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