Coincheck Resumes Yen Withdrawals, Lawsuit on Its Way

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The agency gave Coincheck that deadline on January 29 when it ordered it to investigate how the heist was pulled off and to compile more robust security measures.

The report submitted by Coincheck this week included information on its investigation into the heist and details of steps to bolster its risk management systems, the exchange said in a statement, as reported by Reuters.

The exchange, which froze all withdrawals of yen and cryptocurrencies following the heist, said last week it had confirmed the integrity of its system security and would from Tuesday allow customers to withdraw yen.

Japan's creation of a regulatory system is in sharp contrast to clampdowns on the trade by policymakers in countries such as South Korea, China and India.

According to the company's website, the members of the exchange received payouts to the tune of 40.1 billion yen (~$370 million). He declined to comment on the total amount of customers' yen still stored at the exchange.

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"We have the funds, but we are making individual checks so there are no problems (with repayments)", said Otsuka.

But the exchange has yet to clarify when it will resume cryptocurrency withdrawals, or begin compensation to some 260,000 affected customers. Now, ten traders are filing a lawsuit against the company over the incident.

According to their lawyer, Hiromu Mochizuki, the 10 traders will request Coincheck to allow them to withdraw cryptocurrencies to so-called wallets or folders used for digital money outside the exchange.

Finally, in less dramatic cryptocurrency news out of Japan, central bank governor Haruhiko Kuroda stated that cryptocurrency is unlikely to seriously compete with "legal tenders" as a means of payment for some time, considering that they are now most widely used as instruments of price speculation.

Kuroda also said the BOJ was closely watching developments in cryptocurrency trading to ensure they do not erode public trust over the safety of existing settlement systems overseen by the central bank. "Some people say they should be described as crypto-assets, not cryptocurrencies", he explained.

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