Japanese cryptocurrency exchange Coincheck continues to struggle financially after suffering the largest hack in the history of crypto earlier this year. The company is now reporting losses totaling over $5 million for Q3 2018.

Shortly after the hack, Coincheck was acquired by Japanese financial services company Monex Group. Monex Group posted the company’s Q3 2018 financial results, which show that losses related to Coincheck have grown from $2.3 million in Q2 to $5.25 million in Q3.

Monex Group attributes the losses to continued issues stemming from the aftermath of a hack that saw over $500 million in cryptocurrency stolen from Coincheck. After the hack, Coincheck was forced to halt the purchasing of crypto assets, but allowed customers to continue to sell, which Monex says was a major cause for the losses.

"Since the service suspension in January 2018, Coincheck only allowed existing customers to sell their cryptocurrency," the financial report said.

The $5.25 million Q3 loss brings the grand total Monex Group has lost after the acquisition of Coincheck to $7.5 million. Monex Group acquired Coincheck for $33.5 million back in April.

Coincheck has been the center of controversy in the Japanese region, causing the country’s chief regulator, the Financial Services Agency, to increase scrutiny at all cryptocurrency exchanges in Japan. The hack saw $520 million worth of crypto – primarily NEM tokens – stolen from the exchange and from investors.

Since then, the environment in Japan has changed. The FSA has tightened its grasp on the industry, created a strict licensing process, and recently, approved the Japanese Virtual Currency Exchange Association to self-regulate the industry in Japan.