Coincheck Hack: Japanese Arrested Two For Stolen Bitcoin Purchase

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In a recent decision that has been taken by a Japanese court has stated that it will seize up to $46,000 or ¥4.8 million for Takayoshi Doi as he was involved in the 2018’s cyber-attack on one of the Cryptocurrency exchanges, Coincheck, where NEM of worth $534 million was stolen. The accused, Takayoshi Doi, is a doctor in Hokkaido, who was arrested in March 2020. His executive in Osaka Prefecture was also taken into custody for purchasing stolen NEM from the Coincheck hack knowingly. It has also been found that the stolen NEM was also put up for sale on the dark web that was offered with a significant discount.

The accused had been charged for a violation under the Japanese Organised Crime Punishment law against the collection of the crime revenue. After the arrest, the Metropolitan Police Department has requested for confiscating the cryptocurrencies that Doi had purchased. Later, the Tokyo district granted the seizure order on the 19th of August and had acquired up to $46,000 worth of cryptocurrencies from the account. The seizure is believed to be the very first of its kind in the legal system of Japan.

The Starting Point

Everything started back in January 2018, when around $543 million worth of NEM coins had been withdrawn via the multiple unauthorized transactions made on Coincheck. This caused the exchange to halt all the transactions for an indefinite period inclusive of the fiat ones.

At that period, it was reported that the attacker had targeted the hot wallet that is used to store the NEM that belonged to the customers of the exchange. It is presumed that the cyber attackers might have had the private key to this wallet via fraudulent means and had proceeded to exhaust the wallet.

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Image: NullTx

It had been found out that NEM was the sole cryptocurrency that was stolen. The reason behind this as representatives of the Coincheck provided is that each of the cryptos possessed a different security level. Most of the cryptocurrencies on the Coincheck exchange were stored in the multisig wallets, while NEM was not one of them.

The Consequences

After the Coincheck hack, the platform experienced a 66% decrease in the revenue, and finally, Monex Group bought it that acted as one of its subsidiaries. The incident has led to the removal of all the privacy coins from the platform such as Augur, Dash, Monero and Zcash.

Almost a year after the expensive incident, Coincheck had enabled the NEM trading once again, and back in 2019, Japan’s Financial Services Agency granted a trade license to it.

As of now, it is becoming quite a lot more difficult to steal the cryptocurrencies and get away with it. It has been reported that this Japanese legal action had taken place in the same year when the Florida teenager was arrested against a recent Twitter hack. In that hack, the accounts of several celebrities were hacked by a team of a minimum of three hackers.

Source: Coin Journal


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