Lost & Found? Stolen NEM Tokens Starting to be Offloaded on Six Exchanges

While the dust on the $534 million theft of NEM on Coincheck earlier this month is far from settled, some clues are starting to emerge regarding the stolen tokens. Jeff McDonald, Vice President of NEM Foundation has warned that the hackers have started to offload some of the stolen coins across multiple exchanges.

Discover credible partners and premium clients at China’s leading finance event!

Last week, Japanese crypto exchange Coincheck saw nearly $534 million worth of NEM tokens stolen from last week, although the amount of the fine is not yet known. This resulted in a trade freeze on Coincheck, causing trader outrage as unsubstantiated rumors of a theft of millions of XEM tokens had been stolen.

Since then, Japan’s Financial Services Agency reported it would be fining Coincheck for its security lapses. This past Sunday, Coincheck released a statement saying that it would be returning $0.81 for each dollar of the stolen NEM using internal funding, but how or when that will happen (or whether Coincheck has the funds to cover the loss) is still unclear. Coincheck halted trading in all currencies except Bitcoin following the attack.

The FSA has ordered Coincheck to submit an official incident report as well as a plan for preventing similar incidences in the future by mid-February. Meanwhile, some details have started to emerge this week surrounding the theft. According to McDonald, the stolen coins had been traced to an unidentified account, per a Reuters report.

Subsequently, hackers had begun spending the stolen tokens across no less than six exchanges. Unfortunately, the location of the account was not yet verified, nor was the amount of stolen coins spent, adding a further layer of ambiguity to the report.

McDonald is reportedly contacting these exchanges for more information. Finance Magnates will update the story as it continues to develop.