Conicheck users withdrew a total of $373 million on Tuesday after resuming of the service. This is since the startup reported a $533 million cybertheft end of last month. Coincheck suspended services after this hack.

The startup gave details of the hack to the Financial Services Agency. For instance, customers will get some support from the company as a response mechanism. Additionally, it will improve security to prevent such incidences in future according to the report. Financial Services Agency also conducted inspections to see if the startup has a risk management system in place.

The agency told Coincheck to report back by Tuesday the steps it is putting in place to prevent such issues in the future. The agency said it will ensure customer protection is put into place.

Chief Operating Officer Yusuke Otsuka insisted the company will compensate users without going into details of the hack in a Tokyo briefing. He said an external firm will verify the security first before the company resumes operations.

FSA is also checking whether the company has financial ability to compensate 260,000 holders the ¥46 billion worth of NEM coins.

Waiting for licensing approval

Meanwhile, Coincheck is awaiting approval from Japanese regulator. 16 other firms have the license to operate and has got approval from the agency. Coincheck gave its business improvement plan on Tuesday.

The hack is just one of the many against crypto startups since the start of last year. Many hacks came up following massive increase in crypto prices last year. Japan has a friendly regulation on cryptocurrencies. However, it now has a regulation that requires management of customer protection.

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