Coincheck under trial – Lawsuit filed by 132 investors for the NEM hack

Coincheck had suffered from a $530mn USD loss of the cryptocurrency NEM due to a hack earlier this year. According to a local Japanese news outlet, 132 Coincheck customers have come together and filed a lawsuit asking for a refund of 228mn Yen ($2mn).

This lawsuit was filed at the Tokyo District Court on February 27 to against the wallet and exchange service, Coincheck.  It was in the process of arranging a refund of 81 U.S. cents per token to around 260,000 customers before a group of 7 investors decided to file a class action back on February 15. The trading platform had planned to submit its refund plan to the Japanese Financial Services Agency (FSA).

According to Reuters, the filed action suit questioned,

“Coincheck pay annualized interest of 5 percent on the value of the digital coins from notification of the claim”

The customers complained about the fact that they could not withdraw their funds during this time and that they wanted a quick restitution. The class action suit demands 13 assorted cryptocurrencies and a portion of Japanese Yen as compensation.

One of the lawsuit petitioners, a Japanese investor explained to a group of reporters and exclaimed,

“Make it even, we complain because of our distrust of Coincheck”

Responding to this litigation, a Coincheck Spokesperson expressed,

“We have not responded to the presence or absence of a trial or content”

There is still uncertainty about the official restitution plans sent to the FSA. A ‘capital tie-up’ will be considered by the platform according to some recent reports.

Jilji Press, a local news network stated,

“A person familiar with the matter told them that several possible partners, including an investment fund has emerged”

Coincheck might be in some serious trouble after being sued by 132 investors. The hack that caused all this trouble was the lack of strong security measures. The NEM development team has refused to conduct a hard fork. Instead, they are now creating an automated tagging system. This system will supposedly trace the money and tag any account that receives tainted money.

Just a few hours ago, unconfirmed reports suggested that the stolen NEM money was traced in a Canadian exchange.

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