Versatility of the decentralised NEM protocol allows transactions to be tracked in real-time
SINGAPORE — February 1, 2018 — The NEM.io Foundation, represents the peer-to-peer NEM blockchain platform, today announced it traces funds stolen in a recent hack on the Japanese exchange Coincheck. The decentralised NEM protocol’s flexibility allows transactions to be traced in real-time, which aids exchanges to identify wallets attached to malicious activity. This helps make stolen XEM tokens effectively unusable, because they cannot be deposited without being flagged by NEM. The NEM blockchain platform itself remains secure, and all NEM mobile wallets and NEM Nano Wallets remain secure and intact.
On January 26, 526 million XEM were reported missing from wallets on the Japanese cryptocurrency exchange Coincheck due to a massive security breach of the Coincheck wallet. The NEM Foundation’s automated tagging system, making use of the decentralised API, tracing stolen funds from the hack, with the objective of identifying wallets holding stolen funds. By tagging wallet of stolen funds, anybody can easily verify if stolen NEM funds are distributed to regulated trading platforms.
“The NEM protocol’s powerful decentralised API allows anybody to track these funds in real-time, allowing exchanges to determine if deposits were stolen,”
said Jeffrey McDonald, Vice President of the NEM Foundation.
“We’re actively working with Coincheck and other exchanges to ensure proper handling of this breach. NEM.io Foundation will continue to provide updates as the situation unfolds.”
The cryptocurrency community as a whole is reminded to take proper security measures, such as using multi-factor authentication and hardware wallets.
NEM.io Foundation Ltd.
NEM.io Foundation Ltd. is a non-profit organisation set-up to promote NEM blockchain technology globally. It is currently one of the most well-funded and successful blockchain technology projects in the cryptocurrency industry. Its technology is currently being utilised in a variety of financial institutions and industries.