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  HOME | Business & Economy (Click here for more)

Cybertheft Victims Sue Japanese Cryptocurrency Operator Coincheck

TOKYO Ė A group of victims, who suffered losses in a cyber attack on Japanís Coincheck, filed a lawsuit against the cryptocurrency exchange operator on Thursday.

The class-action lawsuit was filed jointly at the Tokyo District Court by five individuals and two companies.

Another 27 complainants will be added to the lawsuit by the end of the month, said one of the lawyers Kanehito Kita, during a press conference.

The first group of victims have asked the cryptocurrency exchange operator for a reimbursement of 19.5 million yen ($167,000) for the value of the NEM cryptocurrencies, which were stolen during the attack, as well as for other virtual currencies, whose values fell following the theft.

Coincheck has promised to partially reimburse those victims who were affected by the hacking on Jan. 26 without specifying a timeframe.

The cryptocurrency exchange operator, one of the largest in the Asian country, also froze transfers in yen and other virtual currencies following what has been the biggest hacking in the cryptocurrency sector in Japan so far.

Withdrawal of large amounts of money or exchange of the virtual currencies are still frozen.

The cyber attack led to the theft of NEM cryptocurrencies worth 58 billion yen ($536.5 million), affecting 260,000 investors.

Initial reports had suggested security breaches in the system made the theft possible and led Japanís Financial Services Agency to urge Coincheck and another 31 Japanese operators to tighten security measures.

 

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