Hacked Coincheck Exchange to Accept Takeover Bid, Report Says

Japanese cryptocurrency exchange Coincheck, which was the victim of a major heist in early 2018, is to accept a takeover offer from online brokerage Monex Group, a news report indicates.

Citing sources on Thursday, Nikkei Asian Review said that, once the deal is complete, Coincheck plans to change the management team in an attempt to rebuild investor confidence following the hack that saw $530 million in NEM tokens stolen in January.

While information is still sparse, Monex is expected to pay Coincheck several billion Japanese yen for its majority stake (1 billion JPY = $9.34 million). The deal is currently being finalized, Nikkei states, and an announcement may be made by Friday.

As part of the changes to the executive team, Monex’s chief operating officer, Toshihiko Katsuya, will take over as new president, according to the report, with Coincheck’s current president Koichiro Wada and COO Yusuke Otsuka to step down as soon as the deal is inked.

News of the possible takeover bid broke Tuesday, with Nikkei first reporting the rumor. Monex soon after confirmed it was considering the move.

Coincheck has faced investigations from Japan’s financial watchdog over the security failures that led to the hack, as well as its financial health.

The takeover will provide welcome new capital to the exchange, which is currently attempting to refund investors most of what was taken in the hack, and also faces several lawsuits over the affair.

Japanese yen image via Shutterstock