Japan issues first-ever order to seize virtual currency! Following Coincheck hack, man returns 4.8 million yen

Japanese news agency Kyodo reported that the Tokyo District Court issued Japan's first confiscation order for cryptocurrency against NEM, which was leaked in the 2018 exchange Coincheck hack. On the 19th, a man in Hokkaido obtained stolen cryptocurrency NEM and Bitcoin, totaling approximately 4.8 million yen (about 1.33 million New Taiwan dollars).

Japan's First Virtual Asset Confiscation Protection

In 2018, the virtual currency exchange Coincheck (コインチェック) experienced a theft of 58 billion yen worth of NEM, some of which was obtained by a doctor in Hokkaido. The NEM and Bitcoin acquired at that time were confiscated for "receiving criminal proceeds," and the Tokyo District Court, in accordance with the Organized Crime Punishment Law, issued a confiscation protection order. According to Kyodo News, this is the first virtual asset confiscation protection order issued in Japan, and it is now being enforced by the Tokyo Metropolitan Police Department.

The doctor and another man from Osaka were arrested in March this year for acquiring stolen NEM on the dark web, and the Japanese police have stated that they will continue to investigate individuals who receive illicit funds.

Multiple Major Thefts in Japan, Lengthy Judicial Processes

The most famous Mt. Gox exchange hack incident, operated by Frenchman Mark Karpeles, with its main office in Tokyo Shibuya. Since the hack incident in 2014, it was not until March 2019 that there was a verdict against Mark Karpeles. Compensation for the victims is still ongoing, but due to the significant fluctuation in the price of Bitcoin, many victims remain dissatisfied with the compensation process.

After the 2018 Coincheck incident, the company was quickly acquired by Monex, and the exchange promised full compensation to the affected users. Investigations into those involved in the hacked funds and the flow of funds are still ongoing, as seen in various reports in 2020.

Related to Taiwan, Bitpoint Japan, which was hacked in July 2019, had a ripple effect on Bitpoint Taiwan, which was built on the same core trading system. Both crypto and fiat accounts for users were frozen. Taiwanese users filed a criminal lawsuit against the head of Bitpoint Taiwan in October last year on suspicion of breach of trust, and after a year, the three defendants received non-prosecution disposition. The disputes between Bitpoint Japan and Bitpoint Taiwan are still being litigated in Japanese courts, potentially leading to a long wait once again.