Coincheck Hack Update: Removal of Mosaic Tagging System

Dear NEM Community,

On behalf of the NEM.io Foundation, we want to thank you for your ongoing support since January 26, when the Coincheck exchange was a victim of theft.

To date, Coincheck has been working to distribute ¥46.6 billion ($440 million) to the 260,000 customers who lost their holdings of XEM during the Coincheck theft. Coincheck customers are being refunded at the rate of 88.549 Japanese yen ($0.83) per NEM token, thus allowing them to purchase close to three times more XEM than they had lost in the theft at the current market price.

Beginning March 18, the NEM.io Foundation has disabled the tracking mosaic that was put into place to monitor XEM movements from the Coincheck theft. This effort was effective at reducing the hacker’s ability to liquidate stolen XEM and provided law enforcement with actionable information. We don’t plan to release further details due to the sensitive nature of this investigation.

As a non-profit organization, we are committed to promoting the development and adoption of the NEM blockchain solution. The decentralized NEM protocol is highly secure and is performing exactly as designed.

We’ve been working closely with our partners and exchanges to improve security protocols by utilizing NEM’s built-in security features and adoption of industry standard best practices to help protect against future attacks.

Thank you,

Lon Wong
NEM.io Foundation President

© NEM.io Foundation Ltd (Singapore) 2014 - 2018 | All Rights Reserved | NEM ™