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Japan's financial watchdog inspects Coincheck after huge online theft

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Staff Writer | February 2, 2018
Japan's financial watchdog Friday inspected Tokyo-based cryptocurrency exchange Coincheck to see if it has the financial strength to compensate for the loss of digital money worth 58 billion yen ($534 million) to hackers last week.
Coincheck test
Currency   An onsite inspection
The Financial Services Agency conducted the inspection much earlier than the February 13 deadline it has set for Coincheck to identify the cause of the theft and report back with measures to prevent a recurrence, suggesting explanations provided by the company were insufficient.

The agency also ordered all digital currency exchanges in Japan, both registered and pending approval, to report the status of their risk management systems to protect customer assets.

"We decided to conduct an onsite inspection to make sure (digital currency) users are protected," Financial Services Minister Taro Aso told reporters after a Cabinet meeting.

The inspection came after Coincheck said it will compensate some 260,000 holders of the NEM currency who have fallen victim to the theft to the tune of 46 billion yen.