Coincheck Hackers Trying to Move Stolen Coins

NEM Foundation have traced the stolen coins to an unidentified account, and the account owner had begun trying to move the coins onto six exchanges
31 January 2018   668

Hackers who stole around $530 million worth of cryptocurrency from the Coincheck exchange last week are trying to move the stolen XEM coins, NEM Foundation said on Tuesday. This is reported by Reuters.

The Vice President of NEM Foundation Jeff McDonald said the company have traced the stolen coins to an unidentified account, and the account owner had begun trying to move the coins onto six exchanges where they could then be sold, adding that the foundation is contacting those exchanges.

NEM Foundation spokeswoman Alexandra Tinsman said the hacker had started sending out XEM coins to random accounts in 100 XEM batches, worth about $83 each.

When people look to launder these types of funds, they sometimes spread it into smaller transactions because it’s less likely to trigger exchanges’ anti-money laundering mechanisms.

 

Tom Robinson

Сo-founder of Elliptic, a cryptocurrency security firm in London

Robinson added that such hopping among different cryptocurrencies was becoming more prevalent among cybercriminals trying to cover their tracks.

The hackers stole around 5% of the total supply of XEM, the world’s 10th biggest cryptocurrency, according to Coinmarketcap. McDonald said the hackers were unlikely to try to spend anything close to all the stolen cryptocurrency at once, because the “market simply couldn’t absorb that much”.

If the hackers successfully moved the coins to an exchange, they were likely to try to swap them into another cryptocurrency before transferring the coins back into a conventional currency, McDonald said. That would make the funds difficult or near impossible to trace.

SEC to Cease Simex Securitites Trading

As reported, under the federal securities laws the SEC can suspend trading in a stock for 10 days
23 October 2018   41

The US Securities and Exchange Commission (SEC) suspended trading in securities of the American Retail Group (OTC: ARGB), also known as Simex, Inc. This is reported on the website of the agency.

According to representatives of the regulator, the decision was caused by false statements by the company about partnership with a “qualified and approved custodian”. The company also conducted an ICO, which allegedly "officially registered in accordance with the requirements of the SEC."

The SEC does not endorse or qualify custodians for cryptocurrency, and investors should use vigilance when considering an investment in an initial coin offering.
 

Robert A. Cohen

Chief, SEC Enforcement Division’s Cyber Unit

As reported, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.

Also earlier this month, the American regulator recommended investors to "be vigilant when considering the possibility of investing in the ICO."