Monex announces it’s completed the deal to buy the previously hacked Coincheck cryptocurrency exchange for around $34m.
UPDATE: That was quick. Just ten days after it was first revealed that Monex was looking to snap up the troubled cryptocurrency exchange Coincheck, the deal is done. The brief announcement from Monex reads as follows…
Monex Group, Inc. (“the Company”) today announced the successful completion of its acquisition of 100% shares of Coincheck, Inc. (“Coincheck”). As stated in the press release dated April 6, 2018 (“About Monex Group Acquiring Shares of Coincheck, Inc.”), Coincheck has become a wholly owned subsidiary of the Company today.
Following days of rumours about the move, Japan’s third-largest online brokerage – by customer numbers – has confirmed that it will take control of the Coincheck Exchange, which was sanctioned by Japanese authorities earlier this year over a large-scale hack involving the NEM Foundation’s XEM crypto.
While the hunt for the missing coins and those responsible for the hack continues, the Monex deal will see the current Coincheck CEO and COO resign from the board of directors and drop into executive roles. The current Monex managing director and senior executive officer, Toshihiko Katsuya will become president of Coincheck.
The deal, which gives Monex access to Coincheck’s existing trading platform and customer base, seems to be popular with investors in Japan. Per Reuters, Monex shares were up 20% on the news against an otherwise flat Nikkei average – another spike that means its share price has jumped 40% since the rumours of the takeover began.
In terms of the growing crpytocurrency market in Japan, it helps to put the exchange at least on-par with its larger competitor SBI Holdings Inc., which last year obtained its own license to run a cryptocurrency exchange. Its plans were put on pause in March, however, when SBI scrapped the deal it had struck with Huobi to use its tech and staff to run the exchanges, in favour of bringing the operation in house and bolstering security.
A press conference later today will confirm more details on the Monex/Coincheck deal.