Japanese cryptocurrency exchange Coincheck, which was hit by the largest-ever digital currency theft, has agreed to be acquired by Japanese online brokerage Monex Group for 3.6 billion yen or about $34 million. Monex's shares climbed around 20 percent in Japan following the announcement.
It was in late January that Coincheck was hacked of 523 million NEM coins worth 58 billion yen or $530 million at that time. The crypto exchange already began repaying its affected customers.
Following the hacking, Coincheck was under the scanner of Japanese Financial Services Agency, which ordered the exchange to improve its operations. The FSA also demanded a clarification of management responsibility.
In a statement, Monex said the acquisition goes with "MONEX's new beginning", which was announced last October. The company has set up Monex Cryptocurrency Lab aiming to enter the cryptocurrency exchange business.
At the extraordinary general shareholders meeting of Coincheck scheduled on April 16, directors and auditors will be appointed. Coincheck's founding president Koichiro Wada and chief operating officer Yusuke Otsuka will resign from the board and will become the company's Executive Directors.
Toshihiko Katsuya, Monex's Managing Director and Senior Executive Officer of the Company, will be appointed as President and Executive Director.
Following the deal closure, Monex plans to make Coincheck a subsidiary from the consolidated financial results for the first quarter of the fiscal year ending March 31, 2019.
In the fiscal year ending March 2017, Coincheck's business net income was 471 million yen, operating income 719 million yen, and sales 980 million yen.
In Japan, Monex shares were trading at 480 yen, up 20 percent.
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