Japan’s third-largest online broker Monex Group Inc, a leading online trading company based in Tokyo has confirmed to take over Coincheck, the cryptocurrency exchange hacked in the month of January 2018.
Recently, Monex Group made a statement that it was seeking to acquire the Coincheck cryptocurrency exchange. The exchange was the victim of a hack that took place earlier this year. Almost losing $530 million in the worth of XEM cryptocurrency. After this hack, Coincheck was struggling to entertain users who lost faith in the platform.
Therefore, Coincheck started to compensate the funds lost in the XEM “hot” wallet. Therefore, the platform is decides to refund users by $0.83 for each XEM coin. During the completion of compensation phase, Coincheck disburses $430 million equivalent of yen to users for their stolen tokens.
Hence, the Coincheck association with Monex group is promising future. On Thursday, Nikkei Asian Review states that the two firms will work effectively in bringing a change in the executive management department. According to the report, Monex is projected to take over the complete ability of the market and Toshihiko Katsuya will be the new CEO of the Monex Group. After the deal, the current president of the Coincheck will step down from all the responsibility.
It has been said that Monex is planning to pay Coincheck several billion Japanese yen for its majority stake (1 billion JPY= $9.34 million). The agreement is currently being concluded and an announcement will be made in future.
Coincheck at present
Coincheck has seen struck with two business improvement orders from the country’s financial regulator, the Financial Services Agency (FSA). Previously, FSA has already issued licenses to 16 domestic exchange operators where Coincheck is not among them. Hence, the exchange is still submitting an application for a license to FSA to evaluate its process under new management.