Troubled crypto exchange Coincheck snapped up by Japan's Monex for £24m

Japanese financial services firm Monex Group today announced it will buy the troubled cryptocurrency exchange Coincheck for ¥3.6bn (£24m).

Coincheck, which Monex called a "pioneer" among cryptocurrency exchanges, suffered a $534m (£382m) hack in January.

Monex confirmed earlier this week it was interested in making a bid for the exchange, but it said it has been considering entering the crypto exchange business since last October when it launched a cryptocurrency lab.

"We recognise blockchain technology and cryptocurrencies as next-generation technologies and platforms which are likely to drastically change the way people approach money," the firm said in a statement.

"Most especially, the cryptocurrency exchange business plays a core part in a vision of 'Monex's new beginning'."

The company's Tokyo-listed shares jumped 20 per cent on the news.

Monex said Coincheck is in the process of enhancing its governance and internal controls after the theft of millions worth of the cryptocurrency NEM, which is currently the 15th-biggest cryptocurrency in terms of market capitalisation.

"We aim to build a secured business environment for customers by fully backing up Coincheck's enhancement process."

The company added:

Through integrating Coincheck’s knowledge on blockchain technology and cryptocurrency with our knowledge on financial industry, we will 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.

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