Coincheck Traced Its Stolen NEM in Canada's Cryptocurrency Exchanges

Coincheck Traced Its Stolen NEM in Canada's Cryptocurrency Exchanges

in News
According to BIG Blockchain Intelligence Group Inc. some of the funds stolen from Coincheck Inc. in the $500 million heist have been traced to a cryptocurrency exchange in Canada where they are being converted to other cryptocurrencies and then possibly sent back to Japan.
“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,” Shone Anstey, president, and co-founder of BIG said.
BIG used a combination of public ledger information available to anyone and proprietary know-how to trace the coins. Coincheck has identified and published 11 addresses where all 523 million of the stolen coins ended up. The stolen NEM are able to be traced thanks to the NEM development team’s new tagging system that alerts crypto exchange when an account has been tagged for containing stolen funds, with the following messages attached onto the 11 wallet addresses of the hackers:
“coincheck_stolen_funds_do_not_accept_trades : owner_of_this_account_is_hacker.”
This automatic tagging system means that cryptocurrency exchanges are able to easily identify the addresses the hackers and forbid them from converting the NEM into other cryptocurrencies or fiat. More than 24 million coins from the heist have ended up in Japanese NEM exchange Zaif, Akahata, the newspaper published by the Japan Communist Party, reported on Friday. 6 of the 11 wallet addresses used in the hack have been moving a small amount of NEM since January, in values from 1 to over 10,000 coins. One of the addresses contained a message in Japanese in its latest March 1 transfer of around 7 NEM coins:
“This purchase is to determine the bitcoin address of the criminal, insist that the purpose is not for self profit.”
The other 5 wallet addresses have been moving large amounts, ranging from a little less than 300,000NEM to increments of 5, 10, and 20 mln on one account from February through March 1. BIG wrote that it will compile all data of its findings to send to law enforcement in both Canada and the US.  

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