Market Report

Coincheck’s stabilization efforts following USD 530 million hack stunted by bear market



Coincheck’s stabilization efforts following USD 530 million hack stunted by bear market Crypto Heroes

Despite putting in great efforts to achieve stability following the USD 530 million hack earlier this year, Coincheck has found it not easy due to the continued presence of the bear market.

Bear market affecting Coincheck’s operations

The bear market which has been in play since the start of the year has affected numerous cryptocurrency companies, with some of them including ETCDEV closing down their operations. Japanese cryptocurrency exchange Coincheck suffered an attack earlier this year, with the exchange losing NEM coins worth USD 530 million in the process. Due to this reason, it has found it hard to stabilize, with the bear market affecting it despite the great efforts they put in.

According to a report by Nikkei Asian Review, a top executive of the company revealed that they have been trying to turn things around following the hack but has so far found it difficult. The bear trend has persisted with Bitcoin currently trading below the USD 3’500 mark, with other cryptocurrencies also losing a huge part of their value.

The reports further pointed out that Coincheck has been trying to recover the lost funds but has so far found it difficult. Toshihiko Katsuya, President of Coincheck, yesterday stated that “We hope to see trading volume rise as we run the exchange in a stable way, but the market is weak. Volatility is high, but transaction activity has not been revitalized.”

The hack of the exchange led to the biggest theft in the history of cryptocurrency, with the attack forcing the exchange to stop operations for a while. Even though they have resumed operations, things haven’t been the same since.

The representatives of the company revealed that the coins were stolen via numerous unauthorized transactions from a hot wallet that the hackers took control of. The NEM coins were being stored in the wallet, and the hackers stole them there. The theft left Coincheck with no choice than to halt withdrawals from their platform.

Last month, the exchange resumed full operation. For them to recover, it will have to depend on the cryptocurrency market experiencing a Bull Run while also receiving approval from the Financial Services Agency will be a big boost for them. The exchange was purchased by online broker Monex Group back in April and has already made plans to launch their services in the United States from the first quarter of 2019.

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