Coincheck to Stop Handling Monero, ZCash, and Dash
Japan-based exchange Coincheck is still trying to recover from one of the biggest hack attacks on a cryptocurrency exchange to ever happen. Over $550 million worth of NEM have been stolen from Coincheck in January 2018, and the exchange has since announced that they intend to refund the whole amount to users who have lost money after the hack.
At press time, Coincheck has already refunded over $400 million to affected customers. However, all the refund expenses are taken from the company’s personal fund, as CTO Masanori Kusunoki claims that the stolen NEM have already been sold on the darknet, and are quite impossible to track at this point.
After the hack, Coincheck had to review their policies to avoid such massive accidents in the future. The exchange decides that the safest way to protect itself and its customers is to limit the trade on privacy-oriented cryptocurrencies. Again, according to the CTO himself, such cryptocurrencies are extremely hard to keep track of, which makes them a popular vehicle for money laundering.
According to a Japan Times report, Coincheck will stop dealing with three cryptocurrencies, namely Monero, ZCash, and Dash. These coins are all privacy-oriented, and their algorithms use extra encryption to mix up the information about each transaction, making it hard to keep track of addresses and transaction times.
The decision has not been publicly confirmed by Coincheck yet, but the exchange is expected to give an official statement whenever said currencies will not be handled on their website anymore.