According to Nikkei’s reports, Monex Group has officially announced its acquisition of Coincheck. Coincheck’s current CEO Koichiro Wada and COO Yusuke Otsuka will be replaced by Monex Group’s Toshihiko Katsuya, as President of the house.
Damaged Japanese Cryptocurrency exchange Coincheck has finally accepted Monex’s billion investment offer. Coincheck had a massive theft in January this year when exchange lost $542 million worth of cryptocurrency to hackers. Coincheck was hung in middle after the infamous hack and has been criticised in the cryptocurrency market for not having proper security system to prevent the breach. Investors demanded compensation for the lost funds, leading to Coincheck’s reputation decline.
Coincheck apologized for their mistake and refunded its users at approximately 88.549 JPY for each coin. Exchange spent over $430 millions in reimbursement to investors. After adding necessary security measures, exchange resumed trading but it failed to achieve new market standards due to its bad frame in the market with pending lawsuits still in line.
Tokyo based online brokerage Monex Group offered the exchange to work together and bring changes in the executive and management team. After many days of speculation and discussion, the takeover was recently confirmed by both companies. As soon as the investment is finalized, the executive powers will be transferred to Monex.
Joseph Young, a cryptocurrency analyst says:
“If the market cap of a 100 billion yen Japanese online broker increases 23% overnight due to its plans to acquire major cryptocurrency exchange Coincheck, the strong demand towards the cryptocurrency market from investors in the public market is evident.”
With this acquisition over Coincheck which has a large customer base, Monex will have the advantage to compete in cryptocurrency industry with a huge head start. Monex COO Toshihiko Katsuya has been working with online finances at Monex, thus he is considered as the sound choice.
“Coincheck is still applying for a license from the FSA, following the regulator’s decision to require a license for all cryptocurrency exchanges under a revised fund settlement law that came into force in April last year. The FSA will decide whether Coincheck qualifies after reviewing its operations under Monex.”
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