Exchange hacks have always been one of the major setbacks associated with the cryptocurrency space, with several renowned platforms falling victim to security breaches. Even Binance, one of the world’s largest cryptocurrency exchanges in terms of trade volume was no exception after the platform reported a loss of 7000 BTCs following a security breach. So far, one of the most controversial hacks of the year was the Cryptopia hack, a New Zealand-based exchange which lost almost all of its Ethereum holdings to hackers.
The platform, following a security breach in mid-January 2019, fell prey to another attack towards the end of the month. A report by blockchain analysis company, Elementus, revealed that the exchange lost around $16 million worth of ETH and ERC20 tokens to the first hack. Dentacoin, Oyster Pearl, DAPS, Lisk ML, Pillar, Mothership, Everus, Enjin Coin, Cappasity, LINA, and Bytom were among the coins stolen in huge amounts by the attacker.
Now, according to Coinfirm, most of the stolen coins were recorded to have landed in top exchanges. The tweet by AMLT Token and Network read,
#CryptopiaHack story continues to unfold, almost all tokens landed on major exchanges while the #ETH still sits on a hackers address according to @Coinfirm_io http://coinfirm.com Below is @0xProject $ZRX @KyberNetwork $KNC @PowerLedger_io $powr going to exchanges”
The platform followed up this news with an update on the Ethereum coins stolen by the hacker. Coinfirm stated that 10 ETH out of the 30790 stolen coins were transferred to “major crypto exchanges”. However, the exchange did not provide any details of the exchanges these tokens were transferred to. The tweet read,
The hacker sent 30790 #ETH (~$7.67M) to a new address (Yellow) and then sent 10 ETH (~$2500) to an exchange address (green) that then landed on their Hot Wallet. https://t.co/xJ5bGphf44 pic.twitter.com/GqOUMgi7Kh
— Coinfirm (@Coinfirm_io) May 20, 2019
The cryptocurrency exchange had recently announced entering the liquidation phase because of the hack. The process, which would be taken care of by Grant Thornton, came across as a surprise to the platform’s customers as several were of the notion that everything was going well, despite the hack. This was mainly due to the exchange’s reassurance prior to re-opening its service to its customers. Additionally, the exchange never gave any heads-up before entering the liquidation process.
On the liquidation side, the exchange has made it clear that the investigation to check the amounts “owing and available to return to customers” would take months and that they would not be opening their platform for withdrawal services.
Seemee89, a Reddit user, commented,
“It’s easy to understand. Cryptopia can’t follow legal frameworks. Cryptopia pays hackers to hack exchange or they ‘hack’ themselves. Cryptopia closes the company and founders are swimming with dolphins on Fiji with Eth and Btc earned. So, this Eth is actually not hackers ownership but founder ownership, right?”
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