Moneycontrol
Last Updated : Apr 27, 2018 03:30 PM IST | Source: Moneycontrol.com

Crypto-exchange Coincheck had earned profits of $490m before massive heist

Incidentally, the Japanese company lost NEM coins, a token used on NEM blockchain platform, worth over $500 million in a hacking incident in late January

Moneycontrol News @moneycontrolcom

Amid the booming cryptocurrency market in 2017, it was not just investors who reaped profits. Organisations running cryptocurrency exchanges also brought in fat cheques home dealing with them, perhaps, until they didn’t lose their client’s assets to hackers.

A Bloomberg report puts Coincheck’s profit in the 10 month period—April 2017 to January 2018—at a whopping 53.2 billion yen ($490 million). Compared to the fiscal ending March 2017, it was 113 times the net income generated by the firm. Coincheck’s net income in 2016-17 was 471 million yen ($4.31 million).

Further, if compared to the traditional exchanges, its 10-month profit was on par with Japan Exchange Group, which owns the Tokyo Stock Exchange and Osaka Exchange, which earned 66.1 billion yen for all of 2017.

Incidentally, the Japanese company lost NEM coins, a token used on NEM blockchain platform, worth over $500 million in a hacking incident in late January. This week, Coincheck’s parent company Monex Group informed that it recorded an estimated write-down of 47.3 billion yen ($432.56 million) for the year ended March as a refund to its customers.

The hacking incident at Coincheck is the biggest such heist in the cryptocurrency market. The heist surpassed the attack on MtGox exchange in 2014 when hackers ran off with digital currency worth USD 480 million. The breach had forced the Tokyo-based company to shut down its operations and filed for bankruptcy in the US and Japan.

Coincheck was recently acquired by Monex Group Inc. in a 3.6 billion yen ($33.6 million) deal. Now Coincheck is a wholly-owned subsidiary of Japan's third-largest online brokerage firm.
First Published on Apr 27, 2018 03:30 pm
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