Coincheck Resumes Accepting New User Accounts 9 Months After Major Hack

Coincheck is now accepting new user accounts. The crypto platform shut down services after a January hack that made away with $500 million in cryptocurrency.

As an official announcement, Coincheck said:

“Up to date, Coincheck has decided to restart its services step by step for which technical safety was confirmed with supports from external experts. In particular, we resumed JPY withdrawal in February 2018 and remitting and selling of cryptocurrencies gradually during the period from March to June 2018.”

Accepting new user accounts to trade a few available cryptos

In particular, the Tokyo-based exchange is careful to avoid the mistakes that led to the major hack. Per the announcement, the restarted services include new account opening, and depositing of some cryptocurrencies. The cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

Further, users can purchase Ethereum, Litecoin and Bitcoin Cash. Since the hacking incidence, Coincheck did not suspend trades in Bitcoin. Therefore, the additional currencies will join Bitcoin to take purchasable currencies to four.

After the hack, the exchange fell into serious financial problems which prompted a deal with Monex Group. As a result, Monex Group is the new owner of the crypto exchange. The exchange is particular about the reintroduction of services mainly due to safety measures. After the hack, Japan’s Financial Services Agency (FSA) revealed that it intended to punish the exchange for poor system security.

Major losses

Coincheck experienced a very difficult time post-hack. The revamped exchange is yet not able to trade pending a license from FSA. As of October 29 2018, the firm reports losses to the tune of 66% of its revenue during Q3, 2018. In the quarter, the company was only able to turn up $2.8 million in revenue. This compares dismally to the $8.4 million it made in the second quarter of 2018.

According to Oki Matsumoto, the CEO of Monex, the suspended services led to huge losses for the exchange. Further, new customers are wary to use the platform with the hack still fresh in their minds. However, Monex is struggling to put the exchange back in business. As Coincheck resumes accepting new user accounts, it has 1,025 employees with the majority working in the exchange.