Coincheck Slapped With Lawsuit Over Withdrawals Freeze – Are More to Come?
- Coincheck has found itself in a legal battle with investors after freezing withdrawals

Coincheck’s impending lawsuit came to fruition today as affected crypto traders sought to force the Japanese exchange to allow them to withdraw their assets that had been frozen. The development is the latest legal setback for Coincheck, having incurred a heist of move than $500 million in NEM coins late last month.
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The episode has reverberated across the cryptocurrency space in Japan, leading to fresh calls for Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and placing Coincheck’s security protocols under greater scrutiny. Last month, the exchange made the decision to abruptly freeze all withdrawals from the exchange on after a user holding $123 million worth of Ripple tokens suddenly left the exchange with all of their assets; other users with sizeable holdings also reportedly departed from the exchange after the revelation of the NEM hack.
Just days after the attack however, Coincheck announced that it would be paying back users $0.81 for every dollar worth of NEM that was taken from them, however this timeline for the payback has not yet been determined. In the meantime, crypto investors have taken matters into their own hands, culminating in today’s lawsuit.
The suit against Coincheck is aimed at forcing the group to allow upwards of seven investors to withdraw their frozen assets that are worth up to $183,000, per a Reuters report. The group of investors also requested an annualized interest of 5 percent on the value of the digital coins from notification of the claim against Coincheck until the group resumes withdrawals.
Investors however are quickly losing patience. Proponents for crypto regulation in Japan and abroad have also seized on the Coincheck hack. Consequently, the move has sent shockwaves through the world’s government and financial institutions, many of whom have been collectively scrambling over the past several months to figure out how to appropriately regulate crypto.
For many, the hack has only strengthened existing fears and beliefs that cryptocurrency is dangerous, volatile, and insecure.
Coincheck’s impending lawsuit came to fruition today as affected crypto traders sought to force the Japanese exchange to allow them to withdraw their assets that had been frozen. The development is the latest legal setback for Coincheck, having incurred a heist of move than $500 million in NEM coins late last month.
Discover credible partners and premium clients at China’s leading finance event!
The episode has reverberated across the cryptocurrency space in Japan, leading to fresh calls for Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and placing Coincheck’s security protocols under greater scrutiny. Last month, the exchange made the decision to abruptly freeze all withdrawals from the exchange on after a user holding $123 million worth of Ripple tokens suddenly left the exchange with all of their assets; other users with sizeable holdings also reportedly departed from the exchange after the revelation of the NEM hack.
Just days after the attack however, Coincheck announced that it would be paying back users $0.81 for every dollar worth of NEM that was taken from them, however this timeline for the payback has not yet been determined. In the meantime, crypto investors have taken matters into their own hands, culminating in today’s lawsuit.
The suit against Coincheck is aimed at forcing the group to allow upwards of seven investors to withdraw their frozen assets that are worth up to $183,000, per a Reuters report. The group of investors also requested an annualized interest of 5 percent on the value of the digital coins from notification of the claim against Coincheck until the group resumes withdrawals.
Investors however are quickly losing patience. Proponents for crypto regulation in Japan and abroad have also seized on the Coincheck hack. Consequently, the move has sent shockwaves through the world’s government and financial institutions, many of whom have been collectively scrambling over the past several months to figure out how to appropriately regulate crypto.
For many, the hack has only strengthened existing fears and beliefs that cryptocurrency is dangerous, volatile, and insecure.