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Japan: Coincheck to reimburse customers ¥46 billion following hack

Coincheck revealed on Sunday that it will reimburse victimized customers a total of 46 billion yen in virtual currency NEM following a hack on Friday

TOKYO (TR) – On Sunday, the operator of a cryptocurrency exchange revealed it would reimburse victims a total of 46 billion yen following a hack in trading of the virtual currency NEM.

In a release posted on its web site, operator Coincheck, based in Shibuya Ward, said it would reimburse 260,000 customers victimized in the hack a total of 46.31 billion yen from its own funds.

According to the company, the reimbursement is based on a loss of 523 million NEM units (known as XEM) valued a rate of 88.549 Japanese yen each.

On Friday, the company said total losses in the hack were 58 billion yen.

At a press conference on Friday, Coincheck said it was preparing to file a claim with the Financial Services Agency and the Tokyo Metropolitan Police.

According to Coincheck, unauthorized access took place in its system just before 3 a.m. on Friday. The access was discovered by the company at around 11:00 a.m. The company then suspended trading of NEM.

In the release, the company said that it was working on “intensifying security measures while seeking to identify the cause” of the hack.

Launched on March 31, 2015, NEM is a peer-to-peer cryptocurrency and blockchain platform. Coincheck was started in August of 2012. The exchange trades 13 different cryptocurrencies.