Ten cryptocurrency traders have filed a lawsuit against Japanese bitcoin wallet and exchange service Coincheck following last month's theft of $530 million (£382 million) in digital money.
A lawyer representing the claimants, Hiromu Mochizuki, told Reuters that the traders will file the claim at the Tokyo District Court over Coincheck's freezing of cryptocurrency withdrawals,
As part of the lawsuit, the traders will also request that Coincheck allows them to withdraw the digital currencies to wallets outside the exchange, Mochizuki explained.
The news of the lawsuit comes after it became apparent earlier this month that Japanese financial authorities told Coincheck to fix a number of security flaws before crooks stole the $530 million at the end of January.
Japan's Financial Services Agency (FSA) explained that it did not award the company with an official approval to operate because it had identified serious security problems after conducting a review of its systems.
Nevertheless, it is also possible that the group filing the lawsuit will launch a second at the end of the month to claim for damages over the heist, their lawyer added.
According to posts on Twitter, Coincheck froze all withdrawals of yen and digital currencies as soon as it was revealed the theft had happened, but resumed yen-withdrawals from today, after confirming the integrity of its system security.
The Tokyo-based exchange said it would keep restrictions on cryptocurrency withdrawals until it could guarantee the secure resumption of its operations.
Coincheck is set to file on Tuesday a report with regulators on the heist, the safety of its systems, and measures it will take to prevent a repeat of the high scale theft.
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