Japanese official regulator, the Financial Services Agency, pounced on the Coincheck digital currency exchange in Tokyo on February 2nd. Conducting surprise spot checks of Coincheck\'s systems, the FSA said that it had identified network flaws long before last week\'s massive cryptocurrency heist, and asked the exchange to fix them.

Coincheck had not been officially approved to operate as an exchange due to security gaps in its systems, although it had been permitted to operate while registration was pending. Ten FSA officials carried out the surprise checks at Coincheck\'s office premises first thing on Friday morning, as part of the investigation into how the $530m hack was pulled off. 

The FSA had already issued Coincheck with a business improvement order earlier in the week, and is planning to investigate all Japan\'s cryptocurrency exchanges for security flaws. Coincheck had also been ordered to report formally on the hack by February 13th, and describe what measures they were taking to prevent a recurrence. Friday\'s unscheduled inspection was carried out in advance of the deadline to ensure users\' protection. 

Coincheck has said that it would repay some JPY46.3bn ($425m) of the stolen funds, although the FSA has not yet confirmed whether the company has the capacity to do so.