Hacked Crypto Exchange Coincheck Posts 66 Percent Lower Revenue in Q3 2018

Japanese crypto exchange Coincheck saw a 66 percent decline in revenue for Q3 2018, according to fiscal results published by the exchange's operator, Monex Group, Oct. 29.

Coincheck was acquired by Monex Group Inc. as a wholly owned subsidiary on Apr.

16, when Coincheck decided to rehaul its shareholder composition and management after $532 million worth of NEM was stolen from its wallets this January.

Monex CEO Oki Matsumoto told CT Japan today the exchange is "Still awaiting" a license from the regulator.

Monex's results reveal that between July and September of this year, its crypto asset segment raised revenue of ¥315 million.

"Since service suspension in January 2018, Coincheck only allowed existing customers to sell their cryptocurrency. This limited revenue stream resulted in segment loss of 0.6 B. Coincheck has improved in governance, internal control and internal audit, aiming for full service resumption."

While Monex has seen an overall loss since its acquisition of the exchange, the operator has brought down running costs in the most recent quarter by around 17 percent, as compared with Q2. The report further claims that Coincheck currently has around 1.7 million "Mostly young" users, which it deems as "Likely to increase overtime."

As reported in April, Coincheck earned an estimated ¥53.2 billion in the ten months between April 2017 and January 2018, the month of its industry record-breaking hack.

At the time, Monex disclosed that Coincheck had recorded a writedown of ¥47.2 billion for the fiscal year closing in March as a refund to affected customers, yet still managed to close the year in the green.

As of press time, Coincheck is seeing around $5 million in daily traded volume, according to CoinMarketCap.