Hack Aftermath: Coincheck Attempts a Comeback with New Rules and Security Upgrade

Photo Credit: Bitcoinmagazine

In an attempt to rebuild its lost reputation, former Japanese cryptocurrency exchange, Coincheck is believed to be making renewed steps to gain investors trust following a devastating hack in January that has been tagged one of the biggest cryptocurrency exchange hack in history.

It would be recalled that the exchange was taken over by the Monex Group back in April last year. Following the takeover, the company has now renewed its attempt at a comeback by beefing up security system with a two-step authentication system.

In a statement released by Coincheck and made available to all customers, the crypto exchange platform stated that all customers’ logins would now need to be authenticated using google authenticator and SMS notifications. This is part of the security updates that will be implemented across web logins as well as app. More so, this security changes are expected to be enforced via new updates and will be compulsory for all users from the 3rd of September.

Following the devastating hack that saw customers lose their priced investment, the company is hoping that through boosting its security protocol as well as taking a hard line stance against anonymous tokens and limiting margin trading, it can regain its reputation again and earn the trust of investors once more.

It is worthy to note that Coincheck resumed trading in the Lisk (LSK) cryptocurrency, this is coming two days after the company initially suspended LSK transactions due to the launch of the Lisk mainnet. But with LSK developers claiming the launch was a success, Coincheck and a number of other Japanese exchanges including market leader bitFlyer announced that they have resumed LSK withdrawals and deposits.

And while it may be too early to celebrate a comeback, Monex Group which now controls Coincheck has announced that it would be expanding its operations to the United States. In a statement, the CEO Oki Matsumoto stated that “We can broaden our customer base at Coincheck. In the end, we should and we can replicate the profitability [the previous owners] achieved before.

Following the takeover, the new owners, Monex Group acquired Coincheck for $32 million and has agreed to split profits with the former shareholders for the next three year. As part of the deal, Former president Koichiro who is believed to own 45% share in the company and the chief operating officer Yusuke Otsuka who owns a 5.5% stake together with other relevant Coincheck management are expected to step down.