Coincheck Records Profit in Spite of January Hack

Japanese crypto exchange Coincheck has already recorded profit since revealing the hack for 58 billion yen worth of NEM (approx. $530 million) just a couple months earlier.

Currently, the exchange has made more than 62 billion yen in sales with an operating profit of 53.7 billion yen. Its total net profit has reached 6.3 billion yen ($58 million).

Monex enters the game

Coincheck is a subsidiary of one of the biggest Japanese brokerage companies, Monex Group. The company acquired Coincheck after the hack, at the price of about $34 million. The moment was highly suitable for the firm, as under other circumstances the price might have been a couple digits longer.

Monex has released Coincheck’s revenues, which include earnings from 13 handled cryptocurrencies.

In addition, Monex has announced that their own in-house blockchain application will be launched soon.

Profit came prior to hack

Most of the profit was still made before the hack in January. As the exchange was hit, it couldn’t operate fully during the February and March period. They still issued about 500 million yen ($4.5 million) in this time.

Victims hit with tax

The exchange repaid about 260 thousand of their customers. However, as the victims received their funds back, they were hit with taxes. Now, the National Tax Agency has added a new rule in their FAQ. It cites that getting compensation equals to selling a virtual currency and is treated as miscellaneous income, which is not exempted to taxation.


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