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North Korea is the major suspect in the Coincheck's $500 mln heist

Feb 06, 2018 Posted /  3233 Views

North Korea is the major suspect in the Coincheck's $500 mln heist

North Korea is one country which has been always making headlines for its vicious plans to ruin the global peace. The country is no stranger to cryptocurrencies as most of the time it has been accused of escalating scams and frauds related to virtual currencies. The country has been involved in launching global ransom attacks to raise bitcoin and also hacks of South Korean exchanges. In addition, it has been accused of secretly mining cryptocurrencies through the user's computers in different countries with the help of malware.

Lately, the country has been suspected of its involvement with the biggest crypto heist of January 2018 when about $500 mln worth of NEM was robbed. The reports have been claimed by Reuters anonymous sources.

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Reuters anonymous sources came from the country South Korea's national spy agency, who told a parliamentary committee on Monday that North Korean hackers may have been behind the heist on 26th January, where a Japanese exchange Coincheck lost digital coins worth hundreds of millions.

Tokyo based Coincheck on 26th of last month reported that its digital wallet was hacked and more than 520 million units of digital tokens of a currency called XEM were stolen with the hack. According to the media sources, some 260,000 users were affected by the theft and the company admitted that they were lacking the requisite measures to ensure proper safety of digital currencies.

Nonetheless, after the robbery, the company had promised that it will reimburse the customers using its own money as it was lacking at the part of security. In fact, Japanese authorities too have got vigilant than before and have announced that they would deeply scrutinize all crypto exchanges in the country and prepare reports on the safety gaps which lead to security breaches.

North Korea and its bad history

It is estimated that North Korea which is an enclosed country with the autocratic regime is utilizing cryptocurrency to get hard cash amid UN sanctions that are likely to put pressure on its cash reserves. The September report of the security firm FireEye asserted that North Korean hackers were targeting some three cryptocurrency exchanges which lead to one successful attack at one exchange.

Seoul-based Youbit in December last year filed for bankruptcy after losing 17% of its assets in a cyber attack. At that time also there were reports that examined for the possible North Korean involvement in the hack at the Republic of Korea exchange.

The South Korean agency also notified parliament on Monday that North Korea’s extortion of cryptocurrency from the last year was on the scale of tens of millions of dollars. As per the reports of Korea Herald and Chosun Ilbo, who quoted a lawmaker, North Korea used bogus job application forms to hack customers’ passwords. The hacking at Coincheck is so far the biggest cryptocurrency theft on record. Tokyo-based Mt. Gox, which filed for bankruptcy in 2014 after losing about $480 million in a hack, was beforehand the largest heist.

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Tags: worth of NEM crypto heist north korea coincheck

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