Users will receive 88.549 yen for each coin that was stolen. Japanese exchange will compensate clients using internal funds.
Japanese cryptocurrency exchange Coincheck Inc. said it will use its own capital to reimburse customers who lost money in Friday’s $400 million theft.
The Tokyo-based company will repay all 260,000 users impacted by the theft of NEM coins, at a rate of 88.549 yen (81 U.S. cents) for each coin, according to a statement posted on its website after midnight local time on Sunday. A total of 523 million coins were stolen. The statement didn’t specify when the payment will occur.
NEM prices surged 16 percent to $0.97 as of 11:22 a.m. New York time, according to prices on coinmarketcap.com. Other cryptocurrencies including Bitcoin, Ether and Litecoin also gained.
The announcement came less than 48 hours after the hack was discovered on Friday. The attack shocked Japanese policy makers, who introduced legislation last April to prevent such disasters, and piled pressure on global crypto markets wary of rising scrutiny from regulators.
Coincheck didn’t immediately respond to an email requesting more information and verification of the authenticity of the statement. Phone calls placed after 1 a.m. in Japan to two different numbers went straight to voice mail.
If Coincheck successfully navigates the theft, the turnaround wouldn’t be the first in the cryptocurrency world. Bitcoin exchange Bitfinex also overcame a $69 million heist and last year repaid most customers who lost money in the August 2016 attack.
Source: bloomberg.com
