What’s up crypto people!
It’s been a while since I wrote up an article for all of you, simply due to the creating of the BEAST platform, which is part of this Blog now, you can learn more about it by clicking home on this website:)
But lets get into the actual news! As you can see by the title of this article, Cryptopia has been breached ones again (it happened last year also as far as I can remember) and this time the attack was no joke! It is estimated to be worth $16 Million and was focused on Ethereum and ERC-20 tokens.
It has come to my attention that Ethereum and its tokens have been the main focus of hackers for attacks, i’m sure most of you remember the attack that happened on myetherewallet last year also? Well this attack just confirms ones again that Ethereum might be too old and not secure enough, well not anymore at least! This could be a massive reason why many projects are moving to other Blockchains to support their smart-contracts or just creating their own Blockchain, if I ran an ICO last year and got the funding most of them got I would of definitely moved from ERC-20 and created my own coin and Blockchain. Just some food for thought about ETH.
But at the same time it could be as straight forward as there being more Ethereum on the site to hack than BTC and Ethereum easier and quicker to transfer and potentially even sell.
A new report from the data company of Elementus has since provided a better picture as to what value in digital assets was taken from the exchange. The firm puts the estimate at $16 Million in Ethereum (ETH) and ERC20 tokens stolen from Cryptopia. The breakdown of losses from the hack has been provided by Elementus and here it is:
ETH – $3,570,124
Dentacoin – $2,446,212
Oyster Pearl – $1,948,223
Lisk ML – $1,718,610
Centrality – $1,148,144
Mothership – $880,141
Ormeus – $452,841
DAPS – $384,425
Zap – $147,158
Pillar – $254,521
Other tokens – $3,051,709
Total – $16,002,108
The report states:
The funds were taken from more than 76k different wallets, none of which were smart contracts. The thieves must have gained access to not one private key, but thousands of them.
According to Elementus’ investigations, the hack continued for several days after Cryptopia discovered the security breach.
After Cryptopia discovered the hack, they watched the funds continue to flow out of their wallets for four more days, seemingly powerless to stop it. As these wallets were not smart contracts, there should have been no technical complications preventing Cryptopia from securing the funds.
Now most thing that the only plausible explanation for Cryptopia’s inaction is that they no longer had access to their own wallets or did they?
The crypto people managed to alert Binance CEO, Changpeng Zhao, on the presence of funds in the exchange that had been stolen from Cryptopia. The exchange soon froze those funds. The report by Elementus further breaks down the exchanges the hackers tried to use in liquidating their loot.
After their investigations into the Cryptopia hack, Elementus concluded the following.
1,948 Ethereum wallets and $46,000 in ETH might still be at risk
Possibility of Cryptopia having additional funds safely stashed away somewhere
Recommendation for exchanges to freeze these funds as soon as they arrive
So I haven’t used Cryptopia for ages but their security was never all that good and it has been a prime location for hackers for the past few years and 2 attacks in the space of 1 year makes me… well a bit suspicious. Now I am not stating I think they are involved in this as I have 0 proof, but I have heard of exchanges getting hacked and most of them never let it happen again. So if I didn’t questions things like this then I don’t know who would. Let me know what you think about this attack in the comments below.
To conclude: we all know that keeping our cryptocurrency on exchanges in dangerous and each exchange will warn you about this. So if there is an option for you to store it in a secure wallet then do so, but of course if you are trading then what can you really do? Especially if you are trading on smaller exchanges, well then there is nothing you can do. The best suggestion is get out of the trade as soon as you make your profit and store it safely. Most obvious piece of advice you’ll get today but hey all of us would lie if we said that we don’t have any crypto lying around on exchanges which we don’t trade? hahah
Also check out my updated review of Credits the 1 million transactions per second Blockchain which has made some incredible movements with IBM here: