Japanese Authorities Investigate Compensation Claims made by Coincheck
It seems that Japanese authorities are still looking into the activities of Coincheck. Coincheck is the Japanese cryptocurrency exchange that has recently suffered a major hack. Coincheck is also one of the biggest cryptocurrency exchanges in the country.
The hack led to the loss of $530 million, which Coinckeck promised to pay back to users who suffered loses. Now, authorities are looking into whether Coinckeck's hack compensation claims are proper.
Authorities investigate Coincheck's finances
Local media reported that the Financial Services Agency conducted an on-site inspection at Coincheck to determine if the company possesses the finances to fulfill its promises to compensate the users who have suffered loses.
The probe is linked to the announcement that Coincheck made on January 27. At that time, the company said it would issue compensation at a rate of $0.81 for each token that has been stolen. This means that the company promised to pay back $420 million, which is a considerable amount.
However, it seems that the Financial Services Agency is not sure that Coincheck can fulfil that promise. For the moment, the authorities have not released an official statement regarding their findings and Coincheck's financial status.
However, the authorities have been closely monitoring the company after the hack was revealed. Initially, the Financial Services Agency demanded Coincheck to report by February 13 on its own investigation into the causes of the hack, as well as what it plans to do to further improve its security.
Previously, media reports indicated that the Financial Services Agency previously ordered the company to fix its security issues. Apparently, this was the main reason why Coincheck was still to receive approval from the agency to function as an exchange. Japanese authorities have asked all exchanges operating in the country to apply for licenses to function legally.