A New Thread To Japan’s Largest Reported Cryptocurrency Hack

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • A recent news report in Japan disclosed a new lead for the cryptocurrency leak associated with “NEM.”
  • The Financial Service Agency of the country issued a compliance order against CoinCheck as soon the platform revealed the incident to the public.
  • The NEM coins illegally possessed by these individuals approximately amounts to 24 Million XEM units.

A recent news report in Japan disclosed a new lead for the cryptocurrency leak associated with “NEM.” The leak was reported to have taken place through the exchange platform “CoinCheck” located in the Shibuya ward of Tokyo on January 28.

Around 523 Million coins were claimed to have been stolen from the platform. This amounts to around 58 Billion Dollars in cash. The alleged theft was executed when the coins were managed in the “Hot Wallet,” a system where the coins are directly connected to the online as opposed to the “Cold Wallet” System were the coins remain in the offline state.

The Financial Service Agency of the country issued a compliance order against CoinCheck as soon the platform revealed the incident to the public. On a subsequent stage, the COO of the platform confessed that the company has failed to follow the guidelines set up by the FSA, consequentially affecting around 260,000 accounts.

This incident was accounted to be the largest Crypto-theft ever reported in Japan. The leak took place when a laptop belonging to one of the personal employees of the company was infected with a virus to access CoinCheck’s internal database.

The company subsequently announced that it would use its own funds to compensate the victims through Yen from the time from which the company was shutdown. However, the platform did not disclose its capacity to satisfy the damages in entirety. 

The new lead

The Metropolitan Police Department, Cybercrime Countermeasures Division, arrested a doctor and two male executives in Hokkaido and Osaka, respectively, to the criminal incident. The arrest was made for violating the provisions of the Organized Crime Penalties Act. 

The NEM coins illegally possessed by these individuals approximately amounts to 24 Million XEM units, a portion which is estimated to be around 5% of the total quantity reported to have leaked.

The so leaked cryptocurrency is proved to have been transferred in exchange for other cryptocurrencies such as Bitcoin, eventually earning a big chunk of Dollars. Almost the entire quantity of coins is suspected of having been exchanged in the due process.

Other suspects involved in the leak process include the notorious dark site group commonly known as “ Dark Web,” who is alleged to have replaced the exchanged Bitcoin as soon as the incident took place. However, the identity of the person who is accused of leaking the coins is not confirmed as of now.

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