Coincheck Stolen NEM Cryptocurrencies Tracked to Canada

Stolen Coincheck NEM Tracked to Canada: Researcher

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  • NEM coins hacked from Coincheck exchange have been tracked to Canada.
  • Some of these coins may have been sent back to Japan in other cryptocurrencies.

Tokyo, Japan: The Coincheck Inc., which has its headquarters in Tokyo, was hacked on January 26 and NEM cryptocurrencies worth $530M were stolen away. Recently, 132 customers of Coincheck sued the exchange demanding for a quick restitution of their fund while another 7 investors had earlier filed a class action suit seeking for annualized interest of 5% on their claims. However, report from researcher Blockchain Intelligence Group (BIG) Inc. revealed that some of the cryptocurrencies stolen from Coincheck Inc. in the cyber theft have been tracked to a cryptocurrency exchange in Canada.

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Shone Anstey, president and co-founder of BIG, stated that some of the hacked NEM cryptocurrencies from the exchange are being transferred to a Vancouver-based exchange, where they are changed into other cryptocurrencies and then possibly sent back to Japan. However, Shone who refused to name the exchange, tell the amount of cryptocurrency traced or its destination in Japan, said the findings will be handed over to authorities. Shone said:

“We felt it was a significant amount that warranted looking into. They are trying to move it before the door is closed, but there is a lot to move.”

One of the strange part of the theft is that the hacked funds can be easily tracked online, because bitcoin and cryptocurrency transactions in general are all public, though the identities of the senders and receivers can be kept secret. BIG said it used a combination of public ledger information, which is available to anyone, and proprietary knowhow to track the NEM coins. Coincheck has identified and published the 11 addresses where all $530M worth of stolen coins ended up. A newspaper published by the Japan Communist Party, Akahata, reported on Friday that more than 24 million coins from the theft have ended up in Japanese NEM exchange Zaif.

NEM developers created a tracking tool that enables exchanges to automatically reject stolen funds. The 11 addresses identified with stolen coin have been labeled with a tag that reads “coincheck_stolen_funds_do_not_accept_trades : owner_of_this_account_is_hacker.”

It is unclear whether Coincheck identified the hackers as the exchange did not immediately respond to a request seeking comment on the movement of the stolen NEM cryptocurrencies.

About 4 of the addresses linked with the theft have shown activities within the past two days, transferring out more than 31M NEM coins. Some of the transactions carried a cryptic message in awkward Japanese that reads: “This purchase is to determine the bitcoin address of the criminal, insist that the purpose is not for self-profit.”


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