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Lot of investors of Coincheck have lost their NEM (XEM) holding during a cyber attack on January 26, 2018. The company has apologized for the investors, who are suffered by cyberheist and lost their holdings, and soon will refund the amount in Japanese Yen directly into the Coincheck wallet. According to estimates, 260,000 investors have lost their holdings worth 523 million XEM.

What is the Refund Mechanism?

The price will be computed based on the weighted average of traded volume. It will have reference to the Tec BURO Co., Ltd. managed virtual currency exchange JPY (NEM/JPY)/ Zaif’s XEM. The virtual currency exchange operated by Tec BURO Co., Ltd. commands biggest NEM volume in both overseas and in Japan. According to Coincheck, the weighted average price will be taken from the time of suspension of trading on NEM to this release.

The Japanese exchange has further clarified that refund will be calculated from 12:09 Japanese Time when the trading was halted on January 26, 2018 and till the release of this bulletin at 23:00 hours on January 27, 2018.

The investors, who have lost their holdings due to cyber attack, can compute their refund using the following simple formula:

Compensation Amount = Number of NEM lost * 88.549 Yen

However, the company has not set any date to refund the amount to the lost investors. The company will process the refunds using internal funds.

Coincheck Faces the Largest Cyber Attack in Cryptocurrencies

Coincheck has released a series of bulletins on January 26, 2018 informing the public that it has suffered a major cyber attack. The exchange has halted the withdrawal and deposits of NEM (XEM) after the cyberheist. It has later extended the restrictions to Japanese Yen and other cryptocurrencies.

The company has suffered a loss of half billion dollars due to this record cyber attack. The Nem.io foundation president has said the cyber attack is mainly due to the incorrect usage of the multi-signature smart contract. It is revealed in a chat with cryptonews.com. It is one of the worst cyber attacks in 2018.

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