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Breaking: Hacked Japanese Exchange Coincheck Accepts Takeover Bid

Last Updated March 4, 2021 5:06 PM
Samburaj Das
Last Updated March 4, 2021 5:06 PM

Embattled cryptocurrency exchange Coincheck has reportedly decided to accept a takeover offer from Monex, Japan’s third-largest online brokerage.

Japanese business daily Nikkei  is reporting that crypto exchange Coincheck will accept a takeover bid that includes capital in several billion yen, worth tens of millions of dollars, from major Japanese online brokerage Monex. The decision to accept the bid was reportedly made today, a move which will see Coincheck reshuffle its management as the exchange continues its recovery effort after suffering a $530 million theft in NEM tokens in January – the largest cryptocurrency exchange theft of all time.

Monex’s foray into the cryptocurrency industry comes amid its belief that blockchain, the underlying technology of cryptocurrencies like bitcoin, will power its core operations as major online brokerage/

Details of the exact figures and form of investment are still being finalized, the report adds, with details of the deal to be announced tomorrow, Friday.

Coincheck’s founding president Koichiro Wada and chief operating officer Yusuke Otsuka will step down immediately after the exchange receives new capital from Monex as a part of the takeover. Monex chief operating officer Toshihiko Katsuya is in position to take over as Coincheck’s new president. His experience as president of Monex’s online brokerage arm makes him ‘a sound choice to rebuild the troubled cryptocurrency exchange’ the report added.

Coincheck, which has already begun distributing reparations to customers impacted by the NEM theft, has seen struck with two business improvement orders from the Financial Services Agency (FSA), the country’s’ financial regulator. While the FSA has issued licenses to sixteen domestic exchange operators, Coincheck isn’t among them. However, the Tokyo-based exchange is still applying for a license with the FSA set to scrutinize its deal with Monex and review its operations under new management.

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