Hackers Try To Launder The Stolen Coins From CoinCheck

Hackers Try To Launder The Stolen Coins From CoinCheck

Reuters reported that the hackers who made away with cryptocurrency worth close to $530 million from the Coincheck Exchange are attempting to relocate the stolen XEM coins. On Tuesday, the foundation that owns the digital currency mentioned that the robbery that took place last week is considered to be the largest.

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Reuters reported that the hackers who made away with cryptocurrency worth close to $530 million from the Coincheck Exchange are attempting to relocate the stolen XEM coins. On Tuesday, the foundation that owns the digital currency mentioned that the robbery that took place last week is considered to be the largest.

The stolen coins have been traced by the NEM foundation (creators of XEM cryptocurrency) to an account that remains unidentified. Jeff McDonald said that the owner has attempted to relocate the coins to a total of 6 exchanges to sell them off. The hackers managed to steal cryptocurrency that is approximately worth 58 billion Japanese yen. This is equivalent to $533 million. The hackers targeted Coincheck Inc, an exchange that is based in Tokyo late last week. This has raised fresh concerns with regard to the regulatory and security protection in the thriving market.

It is still not known where the hackers’ account was located. McDonald who is currently based in Singapore told Reuters that the hackers are busy trying to approach multiple exchanges to spend the loot, but they were communicating with the exchanges involved. Alexandra Tinsman who is the spokeswoman of the NEM foundation mentioned that the hacker in the heist began sending out XEM coins to any account in XEM batches of 100. Each XEM has the value of $83.

Tom Robinson says that it is a common practice for launders of such kinds of funds to spread the transactions into smaller amounts to avoid triggering anti-money laundering mechanisms set in place. Tom is the co-founder of a cryptocurrency security firm located in London called Elliptic. Mr. Robinson mentions that such activities among various cryptocurrencies were becoming a trend among notorious cyber criminals who are keen on hiding their trail.

The hackers stole 5% of the total XEM supply. Coinmarketcap ranks XEM the 10th most popular cryptocurrency in the globe. McDonald is confident that the hackers cannot spend the whole amount of cryptocurrency they stole due to the market’s inability to absorb that high amount.

He also thinks that if the hackers manage to move the coins to an exchange, they will attempt to exchange them to a different cryptocurrency prior to transferring the coins to fiat currency. A situation that will make it impossible to trace the stolen funds. McDonald added that it is safe to assume that they will successfully escape with a portion of the money.

Crypto-theft

Since 2011, at least 3 dozen cryptocurrency heists have taken place, most of these hacked exchanges later collapsed. In the heists, 980,000 bitcoins or more have been stolen and have never been retrieved to this day.

Mt. Gox, whichwas based in Tokyo and was responsible for handling 80% of all the bitcoin trades in the globe, lost bitcoins worth $500 million in 2014 and filed for bankruptcy. It was the largest heist at that time and it triggered a big sell-off in bitcoin. Robinson at Elliptic continued to say that the 2014 robbery is a good indication of what the industry has survived hence the Coincheck one is just a blip.

XEM was trading at approximately $0.83 per coin at 1744 GMT and approximately $7.5 billion was its total market value. Compared to the day the hack was announced i.e. Friday, the trading levels reduced by 20%. Nonetheless, XEM has still been up over the last 2 months by almost 300%. On Monday, the Financial Services Agency of Japan (FSA) ordered Coincheck to make improvements in its operations. This was after Coincheck suspended all cryptocurrency trades apart from Bitcoin.

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