Notebookcheck

Coincheck hackers get traced as stolen cryptocoins trickle to other accounts

The hackers have been traced spreading the stolen coins to many separate accounts. (Source: Coincodex)
The hackers have been traced spreading the stolen coins to many separate accounts. (Source: Coincodex)
Hackers are trying to spread the stolen NEM coins to as much as 20 accounts, but Coincheck and the NEM Foundation have already tagged all the affected coins, making the affected cryptocurrency easily trackable on exchanges.

Last week saw the biggest heist ever recorded in the crypto world when hackers managed to steal more than US$500 million worth of NEM coins from Japanese online exchange Coincheck. The NEM Foundation assured the affected customers that the underlying protocol offers improved security that will enable authorities to track down the hackers if they try to move the stolen coin to other exchanges in hopes of transforming the cryptocurrency into fiat. With the help of the Foundation, the Japanese exchange and authorities managed to trace all the NEM coins to an unidentified account, and, according to NEM Foundation vice-president Jeff McDonald informed that owners of said account are now slowly moving the stolen coins to six exchanges.

Coincheck and the Foundation are trying to collaborate with the other exchanges in order to freeze all outgoing transactions that involve any of the stolen coins. NEM European promoter Paul Rieger created a bit of confusion when he stated for Reuters that the unidentified account is actually sending coins in batches of 100 (~US$83) to random accounts rather than other exchanges. To clarify the situation Coincheck informed Japan News that the stolen coins were tracked as they were sent to many different accounts (as much as 20). A later Forbes statement from McDonald revealed that the authorities “tagged all the coins so anyone who attempts to purchase them will know they were stolen from Coincheck and should not be purchased. We also have other strategies that we cannot disclose fully at this time. But it does involve an automated system that will follow the coins and tag any accounts that receive the coins.”

The contradictory statements may be related to security concerns regarding the actual measures used by the authorities in order to track and secure the stolen coins. It is important to note that, even if the stolen coins do not get recouped in a timely manner, Coincheck will still reimburse all the affected customers from its own capital.

Source(s)

static version load dynamic
Loading Comments
Comment on this article
Please share our article, every link counts!
> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 02 > Coincheck hackers get traced as stolen cryptocoins trickle to other accounts
Bogdan Solca, 2018-02- 1 (Update: 2018-02- 1)
Bogdan Solca
Bogdan Solca - News Editor
I stepped into the wonderous IT&C world when I was around 7. I was instantly fascinated by computerized graphics, be them from games or 3D applications like 3D Max. I like to keep myself up to date with all the new technologies that get released at an ever increasing rate these days. I'm also an avid SciFi reader, an astrophysics aficionado and, as of late, a crypto geek.