[2018-02-15]Coincheck Produces Recovery Plan While Investors Flock to Withdraw F

[Diced90]

Coincheck Produces Recovery Plan While Investors Flock to Withdraw Funds

Japanese cryptocurrency exchange Coincheck has submitted a report to the country’s financial authority outlining measures it will take following the hack that lost 58 billion yen worth of the cryptocurrency NEM from its platform. However, customers rush to withdraw 40.1 billion yen of their funds so far as the exchange resumes yen withdrawal service.

Coincheck’s Improvement Plans
Coincheck has submitted a report to the Japanese Financial Services Agency (FSA) as mandated under the Order to Improve Business Operations. The order was handed to the exchange by the FSA following the hack that resulted in the loss of 58 billion yen (~USD$544 million) worth of NEM from its platform.
In its report, Coincheck explains key areas of improvement to the agency. Specifically, the exchange detailed four of its plans: “1) investigating the facts and causes surrounding this case, 2) [providing] proper support for our customers, 3) strengthening current measures to manage system risk, 4) creating new measures for system risk management and preventing similar events in the future in addition to making it clear where the responsibility lies for different risks.”

READ MORE https://news.bitcoin.com/coincheck-produces-recovery-plan-investors-withdraw-funds

[aso118]

Coincheck doesn't need a recovery plan; it needs better security. A recovery plan is fine for dealing with the current hack, but exchanges need to buck up to minimize the chances of hacks occurring again. These kind of public mentions of recovery plain are more of a PR exercise, to ensure that customers don't desert the platform.

[bbc.reporter]

@aso118. Coincheck needs to close and shut up. The people who own and run the site have no right to be operating anything that involves holding other people's money, either cryptocurrencies or fiat.

I reckon the investigators should concentrate on the fraud or the inside job angle. I cannot believe they had the kind of vulnerability that was so easy to exploit. The developers of the exchange must be so stupid or placed the vulnerability on purpose.