Last week, Coincheck had reported a Cyber theft of $550 million worth of NEM. The Exchange has now decided to cut all ties with Monero, Dash and Zcash. These cryptos are anonymous and apparently, this has been considered to be a high threat for the market. The stolen coins are speculated to be changed into darknet already as per expert reports.
Anonymity is the ultimate problem.
Coincheck is a Japanese exchange which had faced one of the most terrible crypto experiences in history. It is currently on the process of recovery and has taken the decision to stop dealing in Montero, Zcash and Dash since these are considered to be high risks to the sector.
The blockchains cannot verify the identity of the recipients who invest in these cryptos. This is the major reason behind the decision to not get involved in these exchanges. Since the identities of the recipients aren’t disclosed, the chances of money laundering increases with these cryptos. However, this is not the case with Bitcoins.’Bitcoins’ buys the coins at fixed rates from people who agree to sell.The exchange only accepts the transfer if the accounts and it’s owners are identified.
The revision of the payments under the new registrations are still pending in Coincheck, mostly because of the anonymity of it’s customers. During September the documents were submitted with FSA and it’s been a long time now and there’s still no verdict finalized. After the cyber theft, suspension of all the trading were announced and last Monday, it started back the trade with the three mentioned coins excluded.
The cyber security claims that the stolen NEMs might have been already converted into fiat or other digital currencies. Kusunoki concludes that tracing the coins won’t be an easy task and the site might still be doing the money laundering business.