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The theft of the wallet of a cryptocurrency project and the loss of 7.8 million dollars

The theft of the wallet of a cryptocurrency project and the loss of 7.8 million dollars

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Answer The theft of the wallet of a cryptocurrency project and the loss of 7.8 million dollars

Unfortunately, hacks are very common for cryptocurrency exchanges across the world. But what happened with Trade.io, a Swiss-based cryptocurrency platform, is less known and rarely attacked due to its use of a cold wallet for digital exchanges.

Was it a security breach or was it internal? Continuous puzzle

According to the post on the “Exchanges Medium” blog, the security team at the exchange was alerted to the existence of a suspicious transaction involving a wallet owned by the currency. The wallet in question, which was kept under lock and key in cold storage, held “TIO tokens,” Trade.io’s original digital assets.

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Upon initial investigation, the Swiss exchange quickly became aware of some erratic trading activities for the TIO trading pair on Bancor and Kucoin, two prominent popular asset platforms, alerted the two platforms accordingly to disable any deposits and withdrawals, and did the same on the Trade.io exchange. As TIO moved to the joint convergence point of Kucoin, Bancor and Trade.io, cybersecurity experts on the exchange found that 50 million TIOs worth $7.8 million had been accessed by an authorized user.

To counter this security breach, TIO trading on Trade.io has been suspended until further notice, the “altcoin” has been crossed out by Bancor and Kucoin has temporarily suspended deposits and withdrawals until the issue is analyzed and the coin is tracked in this case. unfortunate.

Although several previous hacks affected exchanges like Bithumb, CoinCheck, and Zaif (recently), many pointed out that the “cold storage wallet” hack was something unprecedented.

According to Trade.io, he was following the cold storage protocol to a “T” where he reportedly placed the hardware wallets in safe-boxes from the bank “in addition to all corresponding materials.” Given the latter part of this statement, it is believed that this hack could only have happened with the help of an internal employee. But the exchange seems to have confirmed that the security deposit boxes were not harmed in any way, leaving the case an unlimited mystery.

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As future steps, Trade.io sought to render the stolen TIO useless, with an announcement indicating that senior exchange officials, including CEO Jim Pressler, decided to launch a fork of the original altcoin on the exchange. TIOx, hoping to mitigate the impact of the hack on the exchange’s ecosystem.

Pressler commented on this matter, explaining that:

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To this end, we are currently considering various options such as launching a fork, with the goal of rendering the 50 million taken from us worthless, but protecting the value of the TIO to anyone else, as the 50 million can be traced back.

We will advise on our decision within the next 24 hours after meeting with our board. Finally, please ensure, that the participants in the liquidity pool, the distributions will be fully distributed, and the ability to enter and exit the liquidity pool will continue to function normally.”

Whether it’s an internal work or an external security breach, the Cold Wallet attack certainly shows that hackers are maturing. Everyone will from now on have to update their security standards to counter cold wallet attacks as well.


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