This week, $ 534 million worth of XEM, the native cryptocurrency of NEM, was stolen from a major Japanese coincheck cryptocurrency market . On January 27, just hours after the announcement of the attack, NEM developers created an automated tagging system to track funds stolen by hackers.

Stolen funds will be traced

As Cointelegraph On January 26, $ 534 million of XEM was stolen from low-security portfolios that lacked multi-signature security measures. At a press conference organized by Cointelegraph, Coincheck officials said all funds were stored in an online wallet or purse, leaving vulnerable user funds at the fingertips. security. Representatives and its open-source development community have strongly opposed the idea of ​​carrying a difficult range to prevent users' funds on a centralized exchange of cryptocurrency from being recovered.

because of the fault of the NEM blockchain. But, because the security breach was caused by the absence of stringent security measures from Coincheck, the NEM development team has legitimately refused to carry a hard fork.

The NEM Development Team has created an automated labeling system. all funds stolen in Coincheck are traced. By labeling stolen funds as stale funds, cryptocurrency exchanges can now easily check whether stolen NEM funds are being withdrawn or deposited on regulated trading platforms.

"Hack update: NEM creates a new system. Automated labeling that will be ready in 24 -48 hours.This automated system will track the money and will mark any account that receives corrupted money.NEM has already shown exchanges how to check if an account has been The good news is that money pirated by trade can not leave, "said a spokesman for the NEM

Jeff McDonald, vice president of the Foundation NEM, confirmed the development of the marking system. The NEM Foundation will lead in the coming weeks to prevent stolen funds from being cashed or converted into cryptocurrency via trading platforms.

At present, hackers are running out of options. It is not possible for hackers to convert the stolen NEM into other major cryptocurrences like Bitcoin and Ethereum because the automatic tagging system will immediately alert trading on contaminated funds.

Due to the size of stolen funds, it is also unlikely that hackers will go through small-scale cryptocurrency trading to convert or launder stolen funds.

At this point, the only safe option for hackers is to hang on to stolen NEMs. Due to the technology developed by NEM in light of the recent Coincheck hack, it has become very difficult for hackers to do anything with the funds. It is not possible to cash the NEM stolen in fiduciary currencies like the US dollar and it is not possible to convert stolen funds into other cryptocurrencies.

Important Favour

NEM, its open The NEM Foundation did not have to develop the tagging system for the benefit of Coincheck, in particular because of stolen funds on the blockchain network NMS would have always circulated around the network even if they are not recovered. But, NEM developers have made Coincheck and investors who have lost millions of dollars in the hacking attack a huge favor by voluntarily creating a solution to a serious problem.