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Coincheck (2018) — Crypto Hack

Laundered

Jan 26, 2018·

NEM

Amount Stolen

$534.0M

523M NEM (XEM)

Recovered

Japanese exchange Coincheck lost 523M NEM tokens stored in a single hot wallet without multisig protection.

Summary

Japanese exchange Coincheck lost 523M NEM tokens stored in a single hot wallet without multisig protection.

How It Was Compromised — CEX via Private Key Compromise

CEXPrivate Key Compromise

Coincheck stored all NEM tokens in a single hot wallet without multisig security, contrary to NEM Foundation recommendations. Attackers gained access to the private key, likely through malware on an employee's computer, and drained the entire NEM holding in one transaction.

Fund Flow & Laundering Analysis

NEM Foundation implemented an automated tagging system to mark stolen XEM. Most exchanges refused to accept tagged XEM. Funds were sold on darknet markets and converted through OTC desks. Despite tagging, Coincheck repaid customers ~$430M from company funds.