Cryptocurrency traders to launch lawsuit against Coincheck on Thursday - lawyer

Cryptocurrency traders to launch lawsuit against Coincheck on Thursday - lawyer

Cryptocurrency traders to launch lawsuit against Coincheck on Thursday - lawyer

Others, frustrated with their inability to access their virtual currency holdings on the online marketplace, are planning a lawsuit. It added it would keep restrictions on cryptocurrency withdrawals until it could guarantee the secure resumption of its operations.

The traders will request that Coincheck allows them to withdraw cryptocurrencies to "wallets" - folders used for storing digital money - outside the exchange, Mochizuki said.

With the lawsuit looming, Coincheck also faces a deadline Tuesday to submit a report on the hack, including an outline on how the company will change its security protocols to prevent future breaches, to Japan's Financial Services Agency (FSA). Hiromu Mochizuki, a lawyer representing the plaintiffs, said that the group might follow up with a second lawsuit later this month related to damages arising from the hack. The company is expected to include measures to tighten security and improve management.

According to posts on Twitter, Coincheck froze all withdrawals of yen and digital currencies as soon as it was revealed the theft had happened, but resumed yen-withdrawals from today, after confirming the integrity of its system security.

The agency is set to ask for additional reports from the exchange if it deems Coincheck's plan is not up to scratch. This way, they could be able to totally get out of the unsecure cryptocurrency exchange.

On the first day, the members of the exchanges took back over 40 billion yen.

The NEM tokens were suspected to be part of the loot from the heist, which had been divided among several different wallet addresses following its illicit transfer away from the platform.

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.

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