Coincheck reported growing losses in the third quarter of 2018

Japanese cryptocurrency exchange Coincheck continues to struggle for financial stability after becoming the victim of the largest hacker attack in the history of the crypto industry earlier this year. However, the company has so far reported losses totaling more than $5 million for Q3 2018.

Shortly after hack, Coincheck was acquired by the Japanese financial company Monex Group. Monex Group released its Q3 2018 financial results, which show that losses related to Coincheck increased from $2.3 million in the second quarter to $5.25 million in the third quarter.

Monex Group attributes the losses to ongoing issues related to the fallout from a hack that resulted in the theft of more than $500 million in cryptocurrency. Following the hack, the exchange was forced to stop buying crypto assets, but allowed customers to sell crypto on the platform, which Monex says is the main reason for its current losses.

A loss of $5.25 million in the third quarter brought Monex Group's total losses after acquiring Coincheck to $7.5 million. In total, Coincheck was acquired for $33.5 million in April.

The report stated that almost 1.7 million traders continue to trade on the site. However, despite the company employing sophisticated internal management tools, including a high-level security system that has recently become a requirement for registered crypto platforms, as of September 2018, Coincheck is not yet registered as an exchanger with the FSA.

Coincheck has been the center of controversy in the Japanese region, and its hack served as trigger to activate regulatory efforts in the country. As a result, the Financial Services Agency has increased control over all areas of the crypto industry in the country. Since then, the crypto environment in Japan has changed, with the FSA tightening controls on the industry, creating a strict licensing process and recently approving Japan Association of digital companies for industry self-regulation in Japan.