Coincheck Hackers Sent Stolen NEM to Philippine ICO

Stolen cryptocurrency also deposited in Czech, U.S. and New Zealand exchanges
05 February 2018   946

Hackers who stole more than $500 million worth of the NEM cryptocurrency from Japanese cryptocurrency exchange Coincheck last week may have spent a small portion of their illegally obtained gains.

Philippine blockchain technology company Appsolutely received on Thursday about 2,000 NEM coins in its initial coin offering. The payment, worth about $2,000 at the time of the theft, came from one of the numerous accounts across which the stolen coins have been dispersed. Whether the account holder has received ICO tokens in exchange for the payment is unconfirmed.

On Friday, 1,100 of the stolen NEM were sent to a Czech cryptocurrency exchange. Some other stolen coins have also been sent to exchanges in the U.S. and New Zealand as well, according to an official of the NEM.io Foundation, which has devised software to track movements of the stolen cryptocurrency.  

The foundation has asked crypto exchanges around the world to refuse service when wrongfully obtained NEM is deposited. But if the stolen coins keep spreading across more accounts, some of them may be converted into other cryptocurrencies or cash.

NEM Foundation to be Almost Bankrupt

Newly elected president believes 160 000 000 XEM could fix the situation
31 January 2019   492

The NEM Foundation, a community-sponsored nonprofit organization to promote the blockchain of NEM is planning a massive downsizing of its staff, which currently has 150 people. This is reported by CoinDesk.

It is assumed that these steps are associated with a significant reduction in the budget and the forthcoming restructuring of the organization based in Singapore.

Thus, the newly elected president of the NEM Foundation, Alex Tinsmen, announced plans to send a request to the NEM public fund for the allocation of 160 million XEM tokens (about $ 7.5 million), which should help save the organization from bankruptcy.

Basically we realized we had a month to operate, due to the mismanagement of the previous governance council.
 

Alex Tinsman

President, NEM Foundation

After the request for the allocation of the specified amount is made officially, all 202 members of the fund will be invited to vote for it. The scale of the cuts will depend on the amount of funding approved, Tinsman added.

According to her, the NEM Foundation spent about 80 million XEM from December 2017 to January 2019 primarily on marketing.

We’ve reduced marketing activities because it doesn’t make sense to market a product [Catapult] that isn’t out yet.
 

Alex Tinsman

President, NEM Foundation

In particular, Alex Tinman refers to the blockchain engine Catapult. Its full-featured release was announced back in May last year.

NEM developers and users who wish to remain anonymous also state that the organization’s previous president, Lon Wong, used his position to promote questionable ICOs. As a result of these actions, he allegedly undermined community confidence.

According to Tinsman, a very strict budget policy will be respected under the roadmap for 2019. It is assumed that each team will be allocated a limited budget, there will also be requirements for public disclosure of documentation describing the tools they develop for the NEM ecosystem.

It is also planned to monetize the activities of the NEM Foundation by educating corporate users and affiliate marketing. This is expected to help reduce the organization’s dependence on community funding.