Home / Tech News / The crypto world’s latest hack sees Israel’s Bancor lose $23.5M

The crypto world’s latest hack sees Israel’s Bancor lose $23.5M

Bancor, a crypto firm that touts a decentralized change service, has misplaced some $23.5 million of cryptocurrency tokens belonging to its customers following a hack.

The Israel-based company raised over $150 million in an ICO last year and its companies embody a wallet with a built-in exchange service. Today, Bancor stated in a statement that “a wallet used to upgrade some smart contracts was compromised.” As a outcome, the attackers made off with $12.5 million in Ether, $1 million in Pundi X’s NPXS token and $10 million in Bancor’s BNT.

Bancor stated it has frozen the BNT, however it’s unable to do the identical to the opposite tokens. The firm added that it’s speaking with quite a few exchanges in a bid to “make it more difficult for the thief to liquidate” the stolen tokens, but it surely stays to be seen how profitable these efforts will probably be.

Following the incident, Bancor has taken its change offline whereas it conducts an investigation. There’s no phrase on when it is going to resume operations.

Critics on Twitter, together with Litecoin creator Charlie Lee pointed, out that the irony that Bancor, which claims to be decentralized, responded to the hack with methods aligned to a centralized system.

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Speaking at TechCrunch’s Blockchain occasion final week, Ethereum creator Vitalik Buterin said centralized exchanges should “go burn in hell”. Buterin’s disdain is especially targeted on greed since centralized exchanges demand massive charges up entrance to record tokens, however given the regularity that exchanges are hacked for big sums of tokens owned by their customers — seemingly month-to-month, if not weekly — safety is one other difficulty on the desk.

In an extra piece of irony, Bancor voiced assist for Buterin’s feedback simply days earlier than its service was hacked.

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The Bancor assault completes a foul day of stories for the crypto world after some users of popular wallet service MyEtherwallet were thought to have been hit by an attack after VPN service Hola was compromised by hackers.

Note: The writer owns a small quantity of cryptocurrency. Enough to realize an understanding, not sufficient to alter a life.



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