Coincheck halts crypto withdrawals, blames outside service outage not a hack
- Coincheck froze crypto withdrawals after an external transaction-screening service it uses failed.
- It is also canceling pending transfers while crediting the funds back to users.
- The exchange stressed there was no hack and that customer assets are safe.
In the early hours of Thursday, November 5, 2026, Coincheck decided to suspend all cryptocurrency deposits.
This came after a third-party analytics service Coincheck uses in screening transactions stopped working. Coincheck has clarified that the disruption was not due to a breach or any access to customer funds.
No unauthorized access, Coincheck says
Coincheck released a post detailing the disruption. Based on the post, the processing of crypto deposits and withdrawal requests began to lag around 00:04 in Japan, on Thursday, November 5, 2026. This happened after the external on-chain analysis it uses to screen transactions failed.
Coincheck stated via its X account that the challenge was initially spotted at 3:09 am
The exchange canceled fresh and pending withdrawal requests. A few applications will be reviewed immediately once the systems are back up, while canceled funds will be returned to users’ account balances. Incoming transfers are still delayed.
Coincheck made it clear that the outage was to the fault of its service provider. The notice, written in Japanese, translates into English as: “This issue was caused by a failure in an external service we use, and there has been no unauthorized access or incident affecting our customers’ assets.”
What this implies is that there were no hacks or unauthorized access to customer assets, as deposits remain safe.
An external on-chain analysis tool at the center
Coincheck offered no details about the third-party service provider but said it was an external on-chain analysis service that it uses to screen crypto receipts and transfers.
Chainalysis offers that service to exchanges through its Know Your Transaction (KYT) product. KYT is used to observe crypto movements for illicit activity.
Just yesterday, November 4, 2026, Chainalysis took KYT offline. It did the same to its other address-screening products and its login page after it flagged abnormal activity. The company plans to bring KYT back online and fix screening the next day.
For now, the connection is mere speculation as none of the firms have publicly linked the two events.
A Chainalysis breach running in the background
Meanwhile, all through last week, Chainalysis was preoccupied with revealing a widening cyberattack. The firm has reported that an attacker obtained the personal details of all the users on its platform.
The blockchain analysis firm has advised users to reset passwords and rotate API keys. Among the affected customers are law enforcement, regulators, and national security bodies.
The attack was first reported on October 30, even though there was no evidence of theft of personal details at the time.
Chainalysis claims “offensive agentic techniques,” are responsible for the attacks, while saying the attack is completely different from the $6.3 billion Binance theft just last week, the largest crypto hack on record.
Why Coincheck is quick to rule out a hack
Coincheck’s antecedents make it easy for the company to rule out a hack. In January 2018, the company paused withdrawals when hackers stole about 500 million NEM tokens, or approximately $530 million. At the time, it was one of the biggest crypto thefts ever.
The firm said it will announce when the current issue is resolved and withdrawals reopen, and asked affected users to resubmit transfer requests after service returns.
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FAQs
Did Coincheck get hacked?
No. Coincheck said the withdrawal freeze came from an outside service outage, not an intrusion, and that it found no unauthorized access and customer assets remain safely stored.
What happens to pending Coincheck withdrawals?
The exchange said it is canceling unprocessed withdrawal requests and returning those funds to users' account balances, though some applications are held for review once systems restart.
Is the Chainalysis breach connected to the Binance hack?
No. Chainalysis said its breach is unrelated to the roughly $6.3 billion Binance theft, the largest crypto hack on record.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
