NEM (XEM) - Coincheck 500M Hack, 500+ million XEM stolen

[Sateetje]

This is a special announcement about the theft of XEM coins from the Coincheck exchange on January 25th 2018. I’m going to explain what the NEM team knows about the situation and what NEM’s response will be. NEM Foundation Jeff McDonald is my guest.

Coincheck is the second largest cryptocurrency exchange in Japan. It was founded in 2014 and has an office in Tokyo. They also provide cryptocurrency payment services to many large businesses such as online retailers.

Today Coincheck reported to law enforcement that they suffered a security breach and someone had stolen 526 million XEM from their company account. The stolen coins were worth about $500 million US dollars. Coincheck has suspended deposits and withdrawals of XEM until they can implement new security measures.

NEM President Lon Wong issued a press release confirming that the NEM blockchain has not been compromised and all coins in NEM Nanowallets and mobile wallets are 100% intact. He also confirmed that NEM will not fork. Take a listen and follow the NEM team on Telegram if you have more questions.

https://www.youtube.com/watch?v=kAN0C3__5qU&t=154s

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If you like this post, please feel free to send me a tip. My NEM address is in the footer. Thanks.

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[Sateetje]

Here's the transcript of the Coincheck Hack Interview with NEM Foundation VP Jeff McDonald + Alex Tinsman from Inside NEM. http://bit.ly/Transcript-Coincheck-Interview

[Sateetje]

NEM.io Foundation Response to $530 Million in XEM Stolen from Coincheck

https://medium.com/nemofficial/nem-io-foundation-response-to-530-million-in-xem-stolen-from-coincheck-26f232f4e03a

[Sateetje]

CNBC: https://youtu.be/NoEjlVHDVVk

[Sateetje]

$530 Mln in XEM Stolen From Coincheck Can Be Traced, NEM Team Confirms

https://cointelegraph.com/news/530-million-in-xem-stolen-from-coincheck-can-be-traced-nem-team-confirms

[andor.gellenhidi]

Yeah, quite a strange event, but still it happened and here is the result of keeping funds on exchanges. I think it's worth to be much more cautious in this regard. Therefore, it is worth using just cold wallets.

[Sateetje]

Statement from the NEM Foundation:
The NEM team is 100% committed to the safety and security of the NEM community.

The decentralized NEM protocol is highly secure and is performing exactly as designed.

Our team is closely monitoring XEM movements from the Coincheck theft of January 25. Due to security concerns around these efforts, we will not be releasing further details on the detailed measures at this time.

We are closely monitoring the stolen funds. Some small amounts, under $100 USD each, have been moved to several accounts. NEM’s tagging system is working to track how funds are moved. None of the stolen funds have been sent to any exchanges. As long as those funds are off public exchanges they will be very difficult to liquidate, especially in large amounts.

- This is a Coincheck problem, not a NEM problem. However, we are happy to help and leverage NEM’s decentralised API to support the NEM community and its investors.
- The Coincheck incident was a hot wallet vulnerability, it did not impact the NEM blockchain security in any way.
- The NEM protocol is highly secure and is performing exactly as designed.
- The hacker hasn’t been able to sell any funds to an exchange.
- The NEM team is closely monitoring the situation, but for security reasons we cannot divulge further details. 
- NEM is a true decentralized blockchain, any attempts we are making to monitor the situation makes use of NEM’s decentralized API, not centralized control.

[Sateetje]

NEM with Tony

NEM blocktime news #33: Hacker strikes back! (Update in the description!)

https://www.youtube.com/watch?v=ykKo_qV5okA

[Sateetje]

BBC World News - VP Jeff McDonald interview about Coincheck hack (500+M XEM stolen)

https://www.youtube.com/watch?v=S3Cuhh6K00o

[Sateetje]

SINGAPORE — February 1, 2018 — The NEM.io Foundation, represents the peer-to-peer NEM blockchain platform, today announced it traces funds stolen in a recent hack on the Japanese exchange Coincheck. The decentralised NEM protocol’s flexibility allows transactions to be traced in real-time, which aids exchanges to identify wallets attached to malicious activity. This helps make stolen XEM tokens effectively unusable, because they cannot be deposited without being flagged by NEM. The NEM blockchain platform itself remains secure, and all NEM mobile wallets and NEM Nano Wallets remain secure and intact.

On January 26, 526 million XEM were reported missing from wallets on the Japanese cryptocurrency exchange Coincheck due to a massive security breach of the Coincheck wallet. The NEM Foundation’s automated tagging system, making use of the decentralised API, tracing stolen funds from the hack, with the objective of identifying wallets holding stolen funds. By tagging wallet of stolen funds, anybody can easily verify if stolen NEM funds are distributed to regulated trading platforms.

    “The NEM protocol’s powerful decentralised API allows anybody to track these funds in real-time, allowing exchanges to determine if deposits were stolen,”

said Jeffrey McDonald, Vice President of the NEM Foundation.

    “We’re actively working with Coincheck and other exchanges to ensure proper handling of this breach. NEM.io Foundation will continue to provide updates as the situation unfolds.”

The cryptocurrency community as a whole is reminded to take proper security measures, such as using multi-factor authentication and hardware wallets.
NEM.io Foundation Ltd.

NEM.io Foundation Ltd. is a non-profit organisation set-up to promote NEM blockchain technology globally. It is currently one of the most well-funded and successful blockchain technology projects in the cryptocurrency industry. Its technology is currently being utilised in a variety of financial institutions and industries.

Source: https://medium.com/nemofficial/nem-protocol-tracks-funds-stolen-from-coincheck-exchange-d4a27aa01d4b

[Sateetje]

https://medium.com/nemofficial/coincheck-hacking-and-what-it-says-about-nem-b4f3a7b00534

The biggest theft in the history of cryptocurrency proved how #NEM truly values its community and its investors — the real people behind its peer-to-peer blockchain network.

[Sateetje]

February 11, 2018 10:03 am JST
Police question Japanese man over Coincheck cryptocurrency theft

TOKYO (Kyodo) -- Police have questioned a Japanese man in connection with last month's massive theft of cryptocurrency from digital currency exchange operator Coincheck Inc., a source close to the investigation said Saturday.

The police learned that the man converted a small amount of the missing NEM coins into another form of cryptocurrency called litecoin through a site on the dark web, which can only be accessed through special software for anonymity, the source said. The man was aware the NEM had been stolen from Coincheck.

Full story: https://asia.nikkei.com/Spotlight/Bitcoin-evolution/Police-question-Japanese-man-over-Coincheck-cryptocurrency-theft

[Coolfackoff]

It seems that even huge news like this really had little to no effect on the price of NEM in fact If i can recall the price of NEM actually increased after this event.