KickICO has become the latest victim of a cryptocurrency hack. Cyber intruders were able to breach the project’s smart contract and steal $7.7 million in crypto tokens from the platform. KickICO has announced that the breach has been plugged and that affected users will be fully reimbursed.
How the Breach Occurred
Details of the cyber intrusion became public when the platform published an announcement via its Medium account today (July 27, 2018). According to the statement, the attack happened yesterday at 1:04 PM PST, when suspected hackers gained control of the smart contract that controls the KICK tokens on the platform. The hackers were able to breach the smart contract because they possessed a private key.
A portion of the announcement reads,
“The team learned about this incident after the complaints of several victims, who did not find tokens worth 800 thousand dollars in their wallets. During the investigation, it was found that the total amount of stolen funds is 70,000,000 KICK, which at the current exchange rate is equivalent to $ 7.7 million.”
Having hijacked the project’s smart contract, the hackers went about trying to siphon funds from the KickICO wallet. To obscure their activities, the cybercriminals made sure that there was no variance between the coins they were stealing and the total coin supply of the project. This they did by destroying 40 addresses, removing all the coins in them and transferring them to 40 new addresses that they created.
However, the KickICO team responded quickly after receiving complaints from users and was able to put a stop to the hack. The announcement further revealed that the team had replaced the compromised private key with the private key of the platform’s cold storage wallet. No explanation was given as to how the hackers came to be in possession of a private key in the first place.
Stolen KICK Cryptocurrency Tokens will Be Replaced
KickICO has promised to refund all affected users and has directed them to send an email to the team. The hack comes at a time when KICK coin, the native token of the KickICO ecosystem, was enjoying a remarkable price run. Over the past two weeks, the price of KICK token has increased by 300 percent from $0.04 to $0.12. At the time of writing this article, KICK is trading at $0.11 and is ranked 132 based on market capitalization.
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