Coincheck Exchange Recorded Over $5 million in Losses for Q3 2018

Coincheck Exchange Recorded Over $5 million in Losses for Q3 2018

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October 29, 2018 by Sandra Onyeiwu
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Coincheck, the Japanese cryptocurrency exchange that suffered a $520 million hack in January, has reported increased losses of $5.25 million for the third quarter of 2018. Monex Group, a Japanese broker that acquired Coincheck after the hack, reported the losses its financial statement for Q3 on Monday (October 29th). Monex’s results reveal that between July and September (termed
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Coincheck, the Japanese cryptocurrency exchange that suffered a $520 million hack in January, has reported increased losses of $5.25 million for the third quarter of 2018.

Monex Group, a Japanese broker that acquired Coincheck after the hack, reported the losses its financial statement for Q3 on Monday (October 29th).

Monex’s results reveal that between July and September (termed Q3 in the U.S., Q2 in the Japanese context) of this year, its crypto asset segment raised revenue of ¥315 million (around $2.8 million). This represents a 66 percent decline as compared with the ¥942 million (around $8.3 million) raised the preceding quarter. The report outlines that:

“Since service suspension in January 2018, Coincheck only allowed existing customers to sell their cryptocurrency. This limited revenue stream resulted in segment loss of ¥ 0.6 B [around $5.3 million]. Coincheck has improved in governance, internal control, and internal audit, aiming for full-service resumption.”

Although the costs for the past three months in the crypto segment have been reduced, Monex said the consequence of the hack led to an increased loss, which went up from $2.3 million in Q2 to $5.25 million (588 million Japanese yen) between July and September.

The document also provides insight into measures undertaken to address security vulnerabilities and governance improvements since the platform received a business improvement order from Japan’s financial watchdog, the Financial Services Agency (FSA), Mar. 8.

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