Monex: Coincheck is a Global Leader in Cryptocurrency
Possible IPO of Coincheck Shares at a Future Date
Japanese online brokerage Monex Group confirmed a deal is in place to acquire cryptocurrency exchange Coincheck, which suffered a major breach early this year.
Just for reminder, a group of cryptocurrency traders filed a lawsuit against Coincheck Inc over theft of $530 million (£382 million) in digital money from the Tokyo-based exchange that happened in January.
What actually happened is that during the aftermath of this multi-million hack of NEM tokens, Coincheck stopped transactions on its platform that left plenty of virtual wealth frozen in the whole process.
The suit now demands that “Coincheck let the plaintiffs withdraw their virtual currencies in order to remove them from the platform and relocate the coins to external wallets”.
“Coincheck is a global leader in cryptocurrency. We aim to fuse Monex’s financial know-how and Coincheck’s innovative philosophy,” Monex CEO Oki Matsumoto told a press conference in Tokyo.
As reported from Japanese daily The Mainichi, the deal will cost Monex 3.6 billion yen (around $33.5 million). Later this month, the broker will acquire 45.2 percent of Coincheck’s shares from its founder and CEO Koichiro Wada, another 5.5 percent from board member Yusuke Otsuka and 49.3 percent from six other stakeholders, the report adds.
In their announcement Monex said:
“We recognize blockchain technology and cryptocurrencies as next-generation technologies and platforms which are likely to drastically change the way people approach money. Therefore, since we announced “MONEX’s new beginning” last October, we have considered entering the cryptocurrency exchange business and set up the Monex Cryptocurrency Lab to grow our business based on these new technologies. Most especially, the cryptocurrency exchange business plays a core part in a vision of “MONEX’s new beginning”.
The company has resolved on 100% share acquisition of Coincheck who has been a pioneer among cryptocurrency exchangers. Coincheck is now in the process of enhancing its governance and internal control after receiving the business improvement order from the Kanto Local Finance Bureau concerning the theft of cryptocurrency, NEM, as a result of unauthorized access to its system on January 26, 2018.
“We aim to build a secured business environment for customers by fully backing up Coincheck’s enhancement process. Specifically, we will maximize the use of our expertise and human resources of business administration, system risk management, and customer asset protection system that we have cultivated since the establishment in the online securities industry. We will support Coincheck to provide secure environment to customers and to grow sustainably as a socially valuable cryptocurrency exchanger.”
Through integrating Coincheck’s knowledge on blockchain technology and cryptocurrency Monex hopes to accelerate the “MONEX’s new beginning” and contribute to the sound development of the cryptocurrency industry. The Company and Coincheck aim to develop a common vision to design the way of finance of the future and provide new values.
Another report from Nikkei Asian Review indicates that Monex has aired plans to obtain regulatory approval for Coincheck, with the aim of a June relaunch. Monex was also cited as saying it hopes to hold an IPO of Coincheck shares at a future date – a move that would be a first for a Japanese cryptocurrency exchange.
“Considering the improvements in the internal control system by Coincheck and progress in making payments, we believe we can obtain approval within two months,” Monex chief executive Oki Matsumoto said at a Tokyo news conference.