Introduction: An Exchange That Has “Died Once”
In previous episodes, we investigated HashKey (the compliance top student), HTX (the sanctions-hit exchange), UZX (the DAO penny-stock project), Phemex (the Morgan Stanley elite team), Tapbit (the “MSB license sticker king”), and Deepcoin (the “El Salvador new outfit”).
Todays subject is probably the most dramatic one in the entire series — Coincheck.
In January 2018, Coincheck suffered the largest cryptocurrency theft in history at the time: hackers stole $530 million worth of NEM tokens.
For most exchanges, such a disaster would likely have ended with a shutdown or even an exit scam.
But Coincheck survived.
It accepted corrective measures imposed by Japan‘s Financial Services Agency (FSA), was acquired by listed company Monex Group, went public on Nasdaq in 2023, and in 2026 obtained Japan’s first stablecoin-related license.
An exchange that had “died once” somehow came back as the “immortal phoenix” of Japans crypto market.
However, on the other side of the story:
- Trustpilot rating: 1.7/5
- In April 2025, Coinchecks official X account was hacked, causing a platform-wide disruption
- Users complained about account freezes and withdrawal problems
Why does an exchange that was acquired by a publicly listed company and listed on Nasdaq still get called a “SCAM” by some users？
Today, we will break it down layer by layer.
1. Regulatory Compliance: Japans “Favorite Child” — Maximum Regulatory Credibility
Japan Financial Services Agency (FSA): The Hardest Regulatory Backing in Crypto
Coinchecks biggest advantage is simple:
It is an officially registered crypto asset exchange under Japans Financial Services Agency (FSA).
Registration number:
Kanto Local Finance Bureau Director No. 00014
How strict is Japans FSA supervision？
After Coinchecks $530 million hack in 2018, the FSA immediately ordered the company to improve its operations, increase cold wallet reserves to above 95%, and establish a stricter internal control system.
Coincheck spent nearly three years completing reforms before fully passing FSA inspections and regaining its operating license.
In Japan, what does FSA registration mean？
Customer assets must be stored separately from company assets; the platform cannot misuse customer funds
More than 95% of customer assets must be kept in cold wallets, while hot wallet exposure must be backed by the companys own funds
The exchange must regularly undergo FSA inspections covering operations, risk management frameworks, and anti-money laundering systems
In 2026, regulatory authority became further concentrated under the FSA, reducing the influence of self-regulatory organizations and increasing pressure on licensed exchanges
But that is not the end of the story.
On August 27, 2026 — just days ago — Coincheck completed another major milestone:
It obtained registration as an “Electronic Payment Instrument Exchange Service Provider” (Kanto Local Finance Bureau Director No. 00002), officially allowing it to provide stablecoin services such as USDC-related operations.
Before this, only SBI VC Trade in Japan had obtained this qualification.
Coincheck became the second company in Japan to receive this approval.
Coincheck Compliance Status (Source: WikiBit)
Global Presence: Licensed or Operating in 8 Jurisdictions
Coincheck Group currently holds licenses or operational capabilities across 8 jurisdictions worldwide.
In December 2023, Coincheck entered Nasdaq through a SPAC merger, trading under the ticker symbol:
CNCK
Parent Company: A Financial Giant Listed on the Tokyo Stock Exchange
Coincheck Inc. is a wholly owned subsidiary of Monex Group.
Monex Group is a long-established Japanese financial conglomerate listed on the Tokyo Stock Exchange Prime Market.
A Tokyo Stock Exchange Prime-listed parent company + a Nasdaq-listed crypto group + a hardcore Japanese FSA license — this compliance structure is among the strongest across all exchanges analyzed in this series.
It ranks second only to HashKey in overall regulatory strength, and in some dimensions may even surpass it.
Risk Rating: Low Risk
Coinchecks regulatory credibility is among the highest in this series.
The Japanese FSA license is not a decorative badge, nor a simple offshore registration from a small country — it represents real regulatory oversight with serious legal consequences.
Its parent company Monex is listed on the Tokyo Stock Exchange Prime Market, while the group itself is publicly traded on Nasdaq.
This level of compliance backing is considered top-tier even within the global crypto industry.
2. Account Security and Withdrawals: A Hacking History, But Withdrawal Channels Remain Stable
For centralized exchanges, the most dangerous risk has always been one question:
Can users actually withdraw their assets？
We conducted a comprehensive assessment based on WikiBit complaint data, overseas community reports, and on-chain wallet tracking information.
Landmark Security Incident: The 2018 NEM Catastrophic Hack
In 2018, hackers exploited vulnerabilities in Coinchecks hot wallet security system, which lacked multi-signature protection.
They stole:
523 million NEM (XEM) tokens
At the time, the stolen assets were worth approximately:
$530 million
It was one of the largest exchange hacks in cryptocurrency history.
However, this incident had a rare ending:
Coincheck used its own funds to fully compensate all affected users in Japanese yen.
Investors did not bear the loss caused by the hack.
This was one of the key reasons why Coincheck avoided collapse after the incident.
Another Security Incident: Official X Account Hacked in April 2025, Causing Platform-Wide Suspension
On the morning of April 28, 2025, Coinchecks official X account:
@coincheckjp
was illegally accessed by a third party.
The hacker used the account to post phishing links disguised as Ledger partnership announcements, attempting to trick users into clicking malicious links.
After discovering the incident, Coincheck immediately suspended all platform services:
Trading
Deposits
Withdrawals
Everything was temporarily halted.
This “better to overreact than miss a threat” security approach can be viewed in two ways:
Is it excessive caution, or responsible protection of users？
Opinions may differ.
But one thing is clear:
Coinchecks risk-control response is serious and proactive.
Real User Feedback Cases in Recent Years
Case 1: KYC Review Delays and Temporary Account Restrictions
Some overseas users reported that after submitting identity update documents, their accounts were temporarily restricted from withdrawals.
The review process sometimes extended for several weeks.
However, users generally reported that funds were not taken away — the issue was mainly slow compliance processing, and accounts were restored after additional documents were provided.
Case 2: Controversy Around New User Reward Programs
Coincheck previously launched attractive newcomer promotions.
However, these rewards came with:
A 14-day expiration period
Complex trading volume requirements for unlocking rewards
Many users criticized the marketing as potentially misleading.
However, this dispute was mainly related to promotional rules, not a situation where users were unable to withdraw their principal funds.
Case 3: High JPY Withdrawal Fees and Slow Bank Transfers
Some users reported delays when withdrawing Japanese yen to local bank accounts.
However, funds eventually arrived.
There have been very few serious complaints involving permanent inability to withdraw principal assets.
On-Chain Wallet Analysis
After the 2018 hack, Coincheck significantly strengthened its asset storage structure.
Current assessment:
The majority of customer assets are stored offline in cold wallets
Hot wallet fund movements can be continuously monitored by the blockchain community
No large-scale abnormal outflows, mass wallet draining, or pre-exit-scam signals have been detected in recent years
Wallet addresses are periodically rotated, but Coincheck does not publicly disclose a complete list of all cold wallet addresses
Risk Rating: Medium-Low Risk
Overall withdrawal channels remain stable.
Serious complaints involving frozen assets or exit scams are rare.
The biggest remaining concern is the psychological impact of its historical security breach.
3. Reserve Transparency: Regulatory Requirements Make Opacity Nearly Impossible
Under the Japanese FSA framework, reserve transparency is not an optional feature.
It is a mandatory requirement.
The FSA requires:
- More than 95% of customer crypto assets must be stored in cold wallets
- The remaining customer assets held in hot wallets must be fully backed by the companys own funds stored in cold wallets
- Customer assets must be segregated and cannot be used for the platforms own settlement purposes
Coinchecks cold wallet ratio reportedly exceeds the regulatory minimum.
According to SEC filings, as of September 30, 2025, Coincheck held crypto assets worth:
60.6 billion Japanese yen (approximately $400 million)
in cold wallets.
But CoinMarketCap Says “Reserve Data Unavailable”
CoinMarketCaps Coincheck page shows:
Total assets: 442 BTC
Reserve data: Unavailable
So what is happening？
Japans FSA requires exchanges to disclose reserve information, but the disclosure targets are mainly:
Regulators
Individual customers
It does not necessarily require exchanges to publish all reserve data publicly for everyone.
Coinchecks proof-of-reserves approach relies on users verifying asset transparency through periodically disclosed reports, rather than a model like Binance, which publishes a Merkle Tree root hash on its website for global public verification.
This “semi-transparent” model has received mixed reactions:
Some users believe it is safer because regulators are directly supervising the exchange.
Others argue that transparency is insufficient because the public cannot independently view the full asset picture.
Risk Rating: Low Risk
Japanese FSA mandatory supervision + 95% cold wallet requirements + strict asset segregation make Coinchecks reserve transparency level one of “regulatory-enforced transparency.”
Compared with exchanges that simply claim:
“We are transparent.”
Coinchecks model is significantly more reliable.
However, the lack of publicly available reserve data on platforms like CoinMarketCap may still create uncertainty for users accustomed to complete public proof-of-reserves visibility.
4. Asset Strength: Nasdaq Listing + Backing from Japanese Financial Giants
Hard Data
Parent company:Monex Group, listed on the Tokyo Stock Exchange Prime Market
Group company:Listed on Nasdaq under ticker CNCK, with a market capitalization of approximately $437 million
Strategic investment in December 2025:Japans second-largest telecommunications giant KDDI invested $65 million, acquiring a 14.9% stake
Customer assets:948.5 billion Japanese yen (approximately $6.05 billion) as of December 2025
FY2025 full-year gross profit:13.5 billion Japanese yen (approximately $90 million)
Q2 FY2026 trading volume:94.7 billion Japanese yen (approximately $640 million), up 72% year-over-year
In December 2025, Japans second-largest telecommunications company KDDI announced a $65 million investment in Coincheck, acquiring a 14.9% stake.
KDDI has approximately 70 million users.
The logic behind KDDIs investment is straightforward:
Instead of building a crypto infrastructure from scratch, it made more sense to invest directly in an existing, compliant, publicly listed crypto platform.
After the investment, Coincheck is expected to gain access to KDDIs massive user ecosystem, while the two companies integrate more deeply in areas such as payment infrastructure and digital asset services.
Concern: Still Not Profitable
Although the numbers look impressive, Coincheck has not yet achieved sustainable profitability.
In Q3 2025, Coincheck reported:
Net profit: 405 million Japanese yen (approximately $2.6 million)
representing a 14% year-over-year increase.
However, the improvement was mainly driven by:
Lower tax expenses
Changes in the fair value of warrants
rather than profits generated from its core operating business.
Risk Rating: Low Risk
Monex + Nasdaq + KDDI — three powerful names that provide strong credibility.
Japans second-largest telecom company invested $65 million in real capital.
It clearly was not investing because it expected Coincheck to disappear.
However, continued losses remain a potential concern.
Making money through tax savings or accounting adjustments is not a sustainable long-term business model.
5. Internal Operations and Team: From “Four-Person Startup” to a Giant‘s Subsidiary
Founder Story: One of Crypto’s Most Legendary “Splits”
Coinchecks predecessor was ResuPress Inc., founded in 2012.
The company was created by four co-founders:
James Riney (First CEO)
An American entrepreneur fluent in Japanese.
He later founded Coral Capital, managing a venture capital fund worth approximately 60 billion Japanese yen.
Takuro Kawabe
Responsible for Coinchecks early development.
He later left the company and became involved in the development of Palworld, which surpassed 32 million global players by February 2025.
Koichiro Wada
Former CTO and the core technical architect behind Coincheck.
Yusuke Otsuka
Currently serving as Executive Officer and CBDO.
Four founders took completely different paths:
One became a venture capitalist managing a 60 billion yen fund
One helped create a globally successful gaming phenomenon
Two remained focused on building Coincheck into one of Japans largest crypto exchanges
The story is almost more dramatic than a movie.
The “Dimensional Upgrade” After Acquisition
After the 2018 hacking incident, Coincheck was acquired by Monex Group.
In December 2023, Coincheck Group completed a SPAC merger and became listed on Nasdaq.
In April 2026, Pascal St-Jean became CEO of Coincheck Group.
Previously, he was the founder of Canadian crypto asset management company 3iQ.
After Coincheck acquired 3iQ, he naturally took over leadership of the group.
The CFO is:
Jason Sandberg
Coinchecks Japan domestic operations are led by:
Satoshi Hasuo
who previously served as CFO of Monex Group.
Risk Rating: Low Risk
A founding team with a strong entrepreneurial history, a Tokyo-listed parent company, a Nasdaq-listed group structure, and a CEO with crypto asset management experience:
Coinchecks leadership structure is highly competitive.
The only concern:
After being acquired by a major financial group, Coincheck is no longer the “founders personal project.”
If Monex eventually decides that crypto is not strategically valuable or profitable enough, it could adjust its business direction.
6. Product Experience and Trading Depth: Japan‘s No.1 App, But With Serious Weaknesses
Coincheck’s biggest competitive advantage in Japan can be summarized in one word:
App.
Strengths
The No.1 crypto exchange app in Japan by downloads
More than 8 million cumulative downloads
Japanese media frequently praises its app simplicity and brand recognition as among the best domestically
Users commonly describe it as:
“Clean interface”
“Easy to operate”
“Suitable even for beginners”
But There Are Several Weaknesses
First: Heavy Retail Focus, Limited Professional Trading Features
Coincheck focuses heavily on:
Mobile app users
Retail investors
Its support for professional order book trading is relatively limited.
Advanced traders may find the platform too basic.
Second: Relatively High Fees
Users frequently complain about:
High costs in the “sales counter” (broker-style trading interface)
Fees that are noticeably higher compared with competitors
Third: Limited Deposit Channels
Free deposits are only supported through:
Rakuten Bank
GMO Aozora Net Bank
The available options are relatively limited.
Fourth: Weak International Presence
Coincheck dominates the Japanese market.
However, globally, its influence is far below major international exchanges such as Binance and OKX.
Risk Rating: Medium Risk
If you are:
A Japanese user
Buying crypto mainly through an app
Not engaged in high-frequency trading
Coincheck provides a very smooth experience.
However, if you are:
A professional trader
A global user outside Japan
Coincheck may not be the ideal choice.
7. Real Community Feedback: Japan vs Overseas — Two Completely Different Worlds
Japan Domestic Market: Overwhelmingly Positive Reviews
On Japanese review platform ZUU, Coincheck receives a rating of 3.8/5.
User reviews include:
“The app is intuitive and easy to use. Even beginners can use it with confidence.”
“The interface is clear, operations are simple, and asset information is easy to understand.”
“The process from depositing funds to buying crypto is smooth.”
Japanese media often describes Coincheck as:
“The most suitable platform for first-time cryptocurrency buyers.”
Overseas Market: Trustpilot Score 1.7/5
Coinchecks 1.7/5 rating on Trustpilot is largely driven by overseas users who were deceived by phishing websites pretending to be Coincheck.
The fundamental difference:
Japanese users complaints:
“Trading fees are too expensive”
“Too few supported deposit banks”
These are mainly user experience complaints.
Overseas users complaints:
“I lost $300,000”
“The platform is a SCAM”
These users were often victims of scammers impersonating Coincheck.
Risk Rating: Medium Risk
Coinchecks community reputation can be summarized as:
“Japanese users love it, while overseas users hate the scammers pretending to be it.”
The issue is not that Coincheck itself is engaging in fraudulent behavior.
The problem is that many overseas users cannot distinguish between the real Coincheck platform and fake websites using Coinchecks name.
For the brand itself, this still creates significant reputational damage.
8. Comprehensive Exit Scam Risk Assessment
| Category | Risk Level | Summary |
| Regulatory Compliance | Low | FSA registration + stablecoin license + presence across 8 jurisdictions; top-tier compliance credentials |
| Account Security / Withdrawals | Medium | Many Trustpilot complaints are related to phishing scams, but security incidents remain a concern |
| Reserve Transparency | Low | FSA-mandated 95% cold wallet requirement + asset segregation create strong regulatory transparency |
| Asset Strength | Low | Monex + KDDI + Nasdaq listing, including $65 million strategic investment |
| Team & Operations | Low | Legendary founding team + Monex management + professional executive leadership |
| Product Experience | Medium | Japans top crypto app, but limited professional features and relatively high fees |
| Community Feedback | Medium | Strong domestic reputation, but overseas reputation damaged by phishing scams |
Overall Rating: Low Exit Scam Risk
Coincheck is one of the lowest-risk exchanges in this series, alongside HashKey in the “high-security group.”
Coincheck and HashKey share many similarities:
They are both “compliance top students.”
One holds a Hong Kong SFC license
The other holds a Japanese FSA license
Both operate under some of the strictest regulatory systems in the world.
One has a listed parent company
The other group itself is publicly listed
Both have backing from traditional financial giants.
However:
“Not likely to run away” does not mean “risk-free.”
Coinchecks biggest risks include:
1. The Shadow of Its Hacking History
The 2018 theft of $530 million remains one of the largest hacks in crypto history.
Although Coincheck has significantly improved its security infrastructure since then, the phrase:
“It was hacked before.”
will always remain attached to its reputation.
2. The Spread of Phishing Scams
The 1.7 Trustpilot score is real.
Many overseas users were tricked by fake Coincheck websites.
Coincheck itself is not scamming users.
However, scammers are using Coinchecks brand name to deceive people.
The result:
The companys reputation has been heavily affected.
3. Questions About Profitability
Despite strong backing from major companies, Coincheck has not yet established a consistently profitable business model.
Relying on:
Tax reductions
Accounting gains
is not a sustainable long-term strategy.
4. The Risk of Being Too Specialized
Coincheck relies heavily on Japans retail app market.
If:
The Japanese crypto market cools down
Competition intensifies
its current growth narrative may face challenges.
9. Recommendations for New and Existing Users
For New Users
If You Are a Japanese User:
Coincheck is one of the most reliable choices in Japan.
Advantages:
FSA registration
User-friendly app
Strong domestic brand recognition
If You Are Not a Japanese User:
Be extremely careful about verifying authenticity.
Coinchecks core market is Japan.
Overseas users should pay particular attention to phishing websites.
Beware of “Investment Group” Scams
Many users who lost hundreds of thousands of dollars on Trustpilot were:
Added to WhatsApp investment groups
Guided by fake “professors” or trading experts
Directed to fake Coincheck websites
The real Coincheck will never ask users to deposit funds through WhatsApp.
Start With a Small Test Transaction
Before depositing large amounts:
Deposit a small amount
Complete the full withdrawal process
Confirm everything works properly
Then consider increasing your position.
For Existing Users
If You Are a Japanese User:
Continue using it.
There is no major concern.
Pay attention to Coinchecks stablecoin business development, which could become its next growth driver.
Always Use Official Channels
The April 2025 X account hack showed that:
Even official accounts can be compromised.
Any link claiming to come from “official Coincheck” should be carefully verified multiple times.
Enable 2FA
Although there have been isolated cases where users were affected even with 2FA enabled, the risk without 2FA is significantly higher.
Monitor Financial Reports
Coincheck Group is a Nasdaq-listed company.
Its financial reports are publicly available.
Pay attention to whether the company can eventually achieve genuine profitability.
Do Not Put All Your Eggs in One Basket
This principle applies to every exchange.
No matter how secure Coincheck appears, it should only represent one part of your overall asset allocation.
Final Recommendation
Who Is Coincheck Suitable For？
Japanese users
Conservative investors prioritizing regulatory compliance
Users who value security and mainstream legitimacy
Reasons:
Japanese FSA supervision
Public company backing
Excellent mobile app experience
Who Is Coincheck Not Suitable For？
Professional traders outside Japan
Users seeking extreme leverage
Aggressive traders looking for hundreds of token choices
Coincheck is not a scam.
It may be one of the most “institutional-grade” exchanges in the entire crypto industry.
However, even a highly regulated platform has its own weaknesses:
Slow
Expensive
Specialized in only certain areas
Next Episode Preview: WikiBit Exchange Exit Scam Risk Ranking – Episode 7: UPbit Exchange. Stay tuned!
Risk Disclaimer:This article represents personal analysis only and does not constitute investment advice. Cryptocurrency investment involves significant risks. Please conduct your own research before investing.
Information in this article was updated on August 27, 2026. Please verify the latest information through multiple sources.
