After the loss of over half a billion dollars in the January data breach, Coincheck has been hit with more bad news. It appears that the exchange will never recover any of the NEM it lost since almost all of it has been laundered through the dark web.
L Plus, a Tokyo-based cybersecurity company, became the bearer of bad news when it performed ananalysisof all online transactions of NEM.
It found a website on the dark web that was used to trade away the stolen proceeds from Coincheck and the wallet used to store the money.
When looking through the wallet, one could see a zero balance as of last week, meaning that most of the NEM, if not all, is now gone.
According to one of the analysts at L Plus, a portion of the proceeds was transferred to another digital wallet that apparently has nothing to do with the heist.
At the beginning of February, a site was created on the dark web to get rid of the NEM quickly, making it cumbersome for authorities to track.
Even worse, around the middle of March, the NEM foundation reneged on its commitment to track the stolen coins without any explanation despite insisting that it “provided law enforcement with actionable information.”
An unnamed security expert asserted around that time thathalf of the proceedswere already laundered, possibly causing many of the organizations assisting in the investigation to lose interest.
At the same time, Coincheck stopped accepting Zcash, Dash, and Monero, probably suspecting that these cryptocurrencies are being used to assist in the laundering process.
For all the resources put into this operation, there no longer appears to be hope of recovering any money from what was the largest cryptocurrency heist in history next to the Mt. Gox incident in 2013.
This article appeared first on Cryptovest
