This week has been the biggest theft in the history of cryptocurrency, when the Japanese stock exchange Coincheck has been stolen approximately $ 530 million in XEM. On 27 January, after only a few hours after the announcement of the theft, the developers of NEM has created an automatic system of tags for tracking of the stolen funds.
The stolen funds are traced
During the press conference, the leaders of Coincheck has stated that all funds were kept in a hot wallet, which made them vulnerable to hackers.
Shortly after the press conference the representatives of the NEM and the development community were strongly opposed to the idea of holding a hard forks to recover stolen funds.
Hardwork would be possible if 534 million dollars in the NEM was stolen due to the lack of NEM blockchain. But since the vulnerability was the lack of serious security measures Coincheck, the team NEM refused to spend hardwork.
Instead, the NEM development team has created an automated system of tags to keep track of all the funds stolen from Coincheck. Now any cryptocurrency exchange, and the exchange will be able to easily determine if the setting tools stolen.
NEM creates an automatic system of tags, which will be ready in 24-48 hours. This automatic system will monitor the money and mark any account that received the stolen money. NEM has already demonstrated exchanger how to check whether the account is marked or not. The good news is that the stolen money cannot be cashed out.
1/ @coincheckjp hack update: NEM is creating an automated tagging system that will be ready in 24-48 hours. This automated system will follow the money and tag any account that receives tainted money. NEM has already shown exchanges how to check if an account has been tagged. Inside NEM (@Inside_NEM) January 26, 2018
At the moment, hackers hacked Coincheck has almost no options for cashing stolen funds. Hackers cannot convert stolen NEM in other cryptocurrencies such as bitcoin and Ethereum because of the automatic tag system immediately signals the exchanger is that the incoming funds were stolen.
Because of the huge size of the stolen money is also unlikely that hackers will be working with a small exchangers to convert or launder the stolen funds.
At this stage, the only safe option for hackers is to store stolen NEM.