Crypto traders to file a lawsuit against Coincheck

News reaching us indicate that crypto traders are to file a lawsuit against Coincheck on Thursday. A lawyer representing the claimants said. The traders are part of the large pool of Coincheck clients that were affected by last month’s loss of $530 million worth of NEM tokens.

While speaking to Reuters, Hiromu Mochizuki, the lawyer representing the plaintiffs, said the ten traders will file a lawsuit against Coincheck at the Tokyo District Court over Coincheck freezing withdrawals of cryptocurrencies.

The traders will request that Coincheck allows them to withdraw cryptocurrencies to “wallets” – folders used for storing digital money – outside the exchange, Mochizuki said. The group may launch a second lawsuit at the end of the month to claim for damages over the heist, he added.

Coincheck representatives did not immediately respond to phone and email requests for comment.

The Coincheck incident highlighted the risks in trading an asset that policymakers are struggling to regulate and has renewed the focus on Japan’s framework for overseeing these exchanges.

The Tokyo-based exchange, which froze all withdrawals of yen and digital currencies following the theft, resumed yen-withdrawals from Tuesday, according to posts on Twitter.

Coincheck said on Friday it would allow customers to withdraw yen after confirming the integrity of its system security. It added it would keep restrictions on cryptocurrency withdrawals until it could guarantee the secure resumption of its operations.

Coincheck is set to file on Tuesday a report with regulators on the heist, the safety of its systems, and measures it will take to prevent a repeat.

This news comes fresh from reports that Coincheck had tracked some of the stolen NEM coins to a trader in Japan and he was being questioned by the police.

Earlier this month, dozens of victims from the Coincheck hack formed an association that was to jointly negotiate reimbursement and was to consider filing a lawsuit against the company.

In the comment section below let us know what you think of these new developments.

Basil Kimathi

Basil is a Bitcoin and blockchain evangelist with several years of writing in the tech and finance industries. Having several years of freelance experience with leading cryptocurrency and tech related sites in past, he believes strongly in the revolutionary power of the blockchain technology. You can get in touch with Basil via twitter @basil_kimathi

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