Bancor hacked for $23.5 million, suspends operations

  • July 9, 2018
  • 6:35 pm ET
Bancor Maintenance Mode

Bancor experienced a “security breach” at 00:00 UTC on Monday morning, causing the decentralized exchange to suspend operations. Bancor CEO Konstantin Gladych provided a statement to Cointelegraph: “Part of the stolen tokens were exchanged via Changelly. Afterwards the tokens were frozen by the Bancor Foundation in our contract. Now we are helping track the stolen…

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Bancor experienced a “security breach” at 00:00 UTC on Monday morning, causing the decentralized exchange to suspend operations.

Bancor CEO Konstantin Gladych provided a statement to Cointelegraph:

“Part of the stolen tokens were exchanged via Changelly. Afterwards the tokens were frozen by the Bancor Foundation in our contract. Now we are helping track the stolen funds.”

As described in a follow-up statement from Bancor, “a wallet used to upgrade some smart contracts was compromised. This compromised wallet was then used to withdraw ETH from the BNT smart contract.”

At the time of the hack, the stolen tokens were valued at over $25 million including 24,984 ETH (~$12.5M) along with 3,200,000 BNT (~$10M) as well as 229,356,645 NPXS (~$1M).

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Bancor was able to freeze the BNT and are working with other exchanges to attempt to trace the stolen ETH and NPXS.

Nuo Times believes they’ve identified the wallet address and transaction hash that caused the breach, noting that the 22,000 ETH were transferred for a transaction cost of just $0.88 at 61 GWEI.

Prior to the hack, Pete Mercury of Crypto Medication claims to have disclosed the vulnerability to Bancor and to have been rebuffed by the project lead Nate Hindman.

The Bancor site remains in maintenance mode as of this writing.

Update – 12:59 pm ET
Litecoin’s Charlie Lee took to Twitter a few hours ago to weigh in on Bancor, saying it offers a “false sense of decentralization” given that they have the ability to freeze and (apparently) lose customer funds.


Via @Bancor • h/t Cointelegraph

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