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Coincheck’s update on the recent NEM [XEM] hack

Sthuthie Murthy

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Coincheck updates the NEM community about the hack progress
Source: PxHere

NEM community has reached out to the public and thanked them for standing by them through the hack and theft attacks earlier this year.

Beginning of this year, in Tokyo, Coincheck Inc. was the victim to hackers who broke into this exchange. This was recorded as one of the biggest heists in crypto markets history. This resulted in a loss of more than $500 million worth NEM coins, raising serious questions about the security of digital currencies in the world.

Coincheck recently dropped three big coins in the market from its list: Monero, ZCash, and Dash which is supposedly the hack attack effect. They have been working to distribute 46.6 billion Yen ($440 million) to about 260,000 of its customers who lost their XEM assets as a result of the theft. They are refunded at a rate of 88.549 Japanese yen per token as declared by the Coincheck team. This is close to three times XEM to what they had actually lost according to current market rates.

Two days ago, NEM.io Foundation had suspended the tracking mosaic used to monitor XEM movements from the theft. This is to reduce the hacker’s ability to liquidate stolen XEM. This is highly sensitive data and confidentiality is crucial which is why the team refused to release any more details.

As mentioned earlier, three major coins were chucked out from Coincheck while the Japanese exchange bore a loss of $550 million worth NEM. The trading platform realized the severity of risks involved.

There were opinions from cybersecurity experts that the stolen coins have already been converted on the darknet. According to the Chief Technology Officer at Japan Digital Design, Masanori Kusunoki, more than half the coins are probably converted into other digital coins or fiat cash already.

Masanori Kusunoki explains:

“Tracing the coins is getting difficult day by day. He believes the site is still being used for money laundering transactions. It is almost evident that we cannot block currency laundering just because all transactions are recorded.  It’s becoming impossible to trace the NEM coins, he added.”

Alfred, a Twitter user says:

“Just disappointed, it is time to move on.”




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Sthuthie Murthy is a full-time reporter at AMBCrypto. She has been researching and writing about the Blockchain technology for a year now. Her passion for blockchain has led her to be a part of AMBCrypto's news reporting team. She does not hold value in any cryptocurrencies currently.

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