Japanese online brokerage firm, Monex Group, Inc. has confirmed its plan to purchase Tokyo-based crypto exchange Coincheck Inc to the tune of $34 million (3.6 billion yen). Rumors were swirling about the acquisition last week, but the official statement was only released today.
The “leading Bitcoin and Cryptocurrency Exchange in Asia” was hacked in January this year, with the hackers getting away with roughly $500 million in digital tokens. Coincheck suffered a major blow due to the security breach and the fallout was just as bad, with traders suing the company.
Coincheck has owned up to the lack of security on their part and has suspended some features including accepting new customers. Furthermore, the company has had to refund their 260,000 customers more than $440 million.
In a statement, Monex said that they have been considering entering the cryptocurrency exchange business and that this niche “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 states that it will be continuing Coincheck operations with enhancements to its processes and protocols – specifically in the areas of system risk management and customer asset protection.
It can be said that the implications for Coincheck customers – existing and potential – are positive, but in the meantime, it won’t be an easy task for Monex as they work to get Coincheck back to where it was before the hack.