Coincheck Group NV

Main article: Cryptocurrency exchanges

History

2022: Access to the Nasdaq Exchange

In mid-March 2022, the Japanese cryptocurrency exchange Coincheck announced its entry into the exchange through a merger with SPAC-company Thunder Bridge Capital Partners IV in the framework of a deal for $1.25 billion.

The transaction will bring the combined company revenue of $237 million from funds held in trust by a specialized acquisition company (SPAC), provided there is no repayment.

Japanese cryptocurrency exchange Coincheck, from which hackers stole $0.5 billion, conducted an IPO

Coincheck from Tokyo manages the market for the purchase and sale of cryptocurrencies and the exchange of digital assets, such as unimaginable tokens. The company has about 1.5 million customers (by March 2022). Coincheck is one of the largest digital asset services in Japan and is regulated by the country's Financial Services Agency. Coincheck manages the platform with the largest number and most diverse set of tokens available in Japan.

Earlier, the company was at the center of a scandal regarding the theft of digital money, which caused close attention from regulators who demanded an improvement in the risk management infrastructure of cryptobirds. Subsequently, the company was acquired for about $34 million by the Japanese online brokerage company Monex Group, which said it plans to launch an initial public offering of Coincheck.

Monex will formally own approximately 82% of the combined company after the merger, with the exception of warrants and revenues. The deal assumes that existing Coincheck investors have the right to receive up to 50 million shares, depending on the future dynamics of the share price.

The combined company, called Coincheck Group NV, is registered on Nasdaq under the CNCK ticker.^[1]

2018: The largest cryptocurrency theft in history

At the end of January 2018, the largest cryptocurrency theft in history occurred. It happened on the Japanese cryptocurrency exchange Coincheck, from which more than $500 million in digital money was stolen. The company promises to reimburse customers for losses.

According to Reuters news agency, during a cyber attack on January 26, cybercriminals stole NEM cryptocurrency (New Economy Movement - cryptocurrency written in Java and JavaScript) in the amount of 58 billion yen ($534 million). 260 thousand users were affected by the theft. At the same time, the co-founder of the exchange, Yusuke Otsuka, said that the stolen funds are being tracked and there is a possibility that they will be returned.

Japanese crypto exchange promised to return to traders the money stolen as a result of a cyber attack

Coincheck announced its intentions to return about 90% of the funds from equity, but did not specify when and how the payment will be made. It is not clear whether the company has enough funds to compensate traders.

The Japanese Financial Services Agency (FSA ) demanded that Coincheck provide a detailed report on the incident and plans to prevent this in the future by February 13, 2018. If necessary, they can pass similar checks on other exchanges, the FSA said.

They have long said that cryptocurrencies are a reliable system, which you cannot say about their exchange. This incident showed that the problem has not been resolved at all. If Coincheck fails to implement emergency measures, this could strike at the current cryptocurrency rush, "said Makoto Sakuma, a researcher at the NLI Research Institute.

This theft is not the first such case in the world of digital currency. Earlier, the Hong Kong cryptobirge Bitfinex, which also survived a hacker attack in 2017, which cost it $65 million, compensated for the losses of most of its customers.

NEM was launched in 2015 and is the tenth largest cryptocurrency by January 2018. NEM capitalization is $7.72 billion.^[2]

Notes