Massive Lawsuit Against Coincheck: 132 Investors Take Action After Major Crypto Hack

Understanding the Coincheck Incident

In late January, Japan’s crypto exchange Coincheck experienced a catastrophic security breach, recording the theft of over 523 million NEM tokens, which were valued around $530 million at the time. This exploit raised not only eyebrows but also serious legal questions, leading to a wave of lawsuits from affected investors.

The Lawsuit Landscape

On February 27, a staggering 132 crypto investors filed a lawsuit against Coincheck, seeking damages amounting to 228 million yen (approximately $2 million). But that’s not all! This isn’t the first time the exchange found itself in a courtroom.

• On February 15, ten traders initiated legal action over the freezing of crypto withdrawals.
• Coincheck did start allowing yen withdrawals as of February 12, which helped ease some of the legal tensions.

Meet the Lawyer: Hiromu Mochizuki

Leading the charge is Hiromu Mochizuki, a lawyer whose Twitter bio proudly labels him the “Secretary General of Coincheck Damage Counterparty Lawyer.” Not only does Mochizuki represent angry investors, but he also isn’t shy about airing grievances against Coincheck on his social media platforms.

“The chaos was a result of Coincheck’s neglected security measures,” Mochizuki stated, fanning the flames of the lawsuit.

The Damage Debate

Adding to the drama, the Coincheck Damaging Countermeasure Team – yes, that’s their name – has indicated that the damages sought may actually exceed what has been publicly reported, skyrocketing to over 490 million yen (more than $4 million). You could say the amount being claimed is…dare I say, coin-worthy?

Regulatory Repercussions

Since the infamous hack, Japanese regulators have begun their inspection spree, conducting evaluations of unregistered crypto exchanges, including Coincheck. They are assessing computer safety measures and uncovering the mysterious management practices surrounding customer assets. And who knows? Perhaps more lawsuits are lurking around the corner.

Conclusion: Will Coincheck Survive?

As this drama unfolds, the question remains: How will Coincheck bounce back from this tumultuous chapter? With legal battles brewing and regulatory scrutiny intensifying, only time will tell if they can regain the trust of their customers or if they’ll become another cautionary tale in the wild west of cryptocurrency.