Hacked Crypto Exchange Coincheck Sold to Monex For $34 Million

  • Months after losing over $500 million in one of crypto's biggest breaches ever, Coincheck will be acquired by an online brokerage firm in Japan
  • The deal will see Monex pay $34 million for all of Coincheck's shares. The exchange's founding president and COO will step down from management.

Japanese brokerage firm Monex Group has confirmed the acquisition of embattled cryptocurrency exchange Coincheck for 3.6 billion yen ($34 million), scheduled later for this month. The Tokyo-based exchange was hacked earlier this year, when a staggering $530 million worth of NEM tokens were stolen.

As recently reported Coincheck accepted Monex’s acquisition bid. This morning, Monex announced it will be acquiring 100 percent of Coincheck’s shares, which are currently over 45 percent owned by Coincheck CEO Koichiro Wada. About 5 percent belong to a board member and just under 50 percent are in the hands of six other stakeholders.

Coincheck’s founding president Koichiro Wada and its chief operating officer Yusuke Otsuka will step down from the cryptocurrency exchange’s management when the brokerage firm takes over. In its press release, Monex recognized blockchain technology and cryptocurrencies “are likely to drastically change the way people approach money.”

The firm added:

“Most especially, the cryptocurrency exchange business plays a core part in a vision of “MONEX’s new beginning”. Therefore, the Company has resolved on 100% share acquisition of Coincheck who has been a pioneer among cryptocurrency exchangers.”

Monex's press release

The Japanese online brokerage’s CEO Oki Matsumoto has announced plans to obtain regulatory approval for the exchange, with an aim to have Coincheck operational again in two months. Matsumoto even stated that Monex intends to have an IPO for Coincheck’s shares, a move that has never been done by a Japanese exchange.

Monex further acknowledged Coincheck’s hack, and revealed it’s going to support the exchange in order to “provide secure environment to customers and to grow sustainably as a socially valuable cryptocurrency exchange.”

Coincheck Hack

The stolen tokens were reportedly stored in a hot wallet, and not secured in cold storage as is standard practice with such a large sum. The exchange cited technical difficulties and a lack of staff as the cause for one of the largest crypto heists in history, dwarfing even the notorious Mt Gox breach of 2014.

Since the hack, 132 investors have joined a class-action lawsuit against Coincheck for the refund of their stolen assets. The exchange is under investigation by the Japanese Financial Services Authority (FSA), which recently suspended several Japanese exchanges as a result of poor security and compliance standards.

Rwanda’s Central Bank Reportedly Considering Launcing Its Own Cryptocurrency

Michael LaVere
  • The National Bank of Rwanda is considering developing a digital currency. 
  • Planning to use Canada, Singapore and the Netherlands as model countries. 

The National Bank of Rwanda (NBR) is reportedly considering the development and launch of a state-backed cryptocurrency. 

Rwandan Digital Currency

According to a report by Bloomberg published on Aug. 22, the central bank is looking into the feasibility of launching a cryptocurrency that would make processing transactions more efficient in addition to boosting economic growth. 

The report claims that the NBR intends to learn from the experience of Canada, Singapore and the Netherlands--other countries that have tested the use of blockchain technology backing a central bank digital currency. 

Financial Stability Director-General Peace Masozera Uwase told Bloomberg in an interview, 

There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions. Challenges come in, if technology is down how do you deal with such issues? “We will join in once we are ready.

Rwanda’s consideration of a digital currency comes just weeks after it was reported that China’s central bank digital currency is set for launch, despite the country’s negative stance towards bitcoin and cryptoassets. 

However, the global attitude of central banks is gradually shifting towards the issuance of a digital currency, as existing financial systems seek to find ways to keep up with the fintech revolution being generated through crypto and blockchain.