Half of CoinCheck’s Stolen Crypto Probably Already Laundered

The hackers that were involved in the high-profile Coincheck hack which took place earlier this year, may have successfully managed to covert half of the stolen NEM tokens into other cryptocurrencies.

The hackers that were behind in the large-scale Coincheck theft may have made use of the anonymous “dark web”, which has caused a great deal of trouble for investigators that were trying to locate the stolen cryptocurrency which was valued at roughly $547 million at that time, reported Japan Today.

A cybersecurity expert believes that hackers created a website on the dark web that enabled them to trade cryptocurrencies on February 7th. The conversion of NEM coins started right away, and data shows that transactions are still taking place on the website, possibly rendering the stolen NEM all but untraceable.

The NEM Foundation has been working round the clock in efforts to trace the stolen NEM, mainly by flagging accounts that are suspected of being used for illegal transfers. In the process, it has also requested that all exchanges that deal with digital currencies to deny transactions from these flagged accounts.

These efforts are more just to slow down the laundering process for the criminals, as they are of no help of actually contributing to their capture.

“It has become evident we cannot block currency laundering just because all transactions are recorded. Exchange operators need to make prior agreements on the handling of stolen virtual coins,” said Masanori Kusunoki, Chief Technology Officer at Japan Digital Design Inc.

Japan Today’s report comes after BIG Blockchain Intelligence Group made the claim that its Forensic and Investigations Division had successfully traced the laundered funds from the high-profile Coincheck theft to Vancouver-based exchange.

“BIG Blockchain Intelligence Group will compile the information gathered from its suite of proprietary technology search and data analytics tools into a comprehensive, official report outlining its forensic findings – for delivery to law enforcement agencies in Canada and the US,” stated the company earlier this month.

it remains to be seen if the foundation’s efforts will prove fruitful, but so far no one actually has managed to successfully track down any of the stolen coins.

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