Another Cryptocurrency Exchange Gets Hacked for Millions

mood · Sep 10, 2020

Another Cryptocurrency Exchange Gets Hacked for Millions
It's the latest in a long line of costly hacks for crypto exchanges throughout the world
September 8, 2020
https://decrypt.co/41210/another-cryptocurrency-exchange-gets-hacked-millions

Hackers have compromised yet another cryptocurrency exchange. This time, it’s the small-time Slovakian exchange Eterbase—though the amount hackers made off with is nothing to sneeze at: over $5 million.

Hackers today raided Eterbase’s wallets for Bitcoin, Ethereum, XRP, Tezos, Algorand and TRON, the exchange reported on its Telegram channel today. It all adds up to about $5.4 million, according to Eterbase.
Eterbase is a small crypto exchange that trades about $3 million per day, per metrics site Coin Gecko.

Early this morning, hackers managed to get into Eterbase’s hot wallets, i.e. those wallets that are connected to the Internet (as opposed to cold wallets, which are not).
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Eterbase wrote in its Telegram channel: “We have reported the matter to law enforcement and we are cooperating closely in the investigation. We want to assure our clients that we are taking all necessary steps to ensure that the amount of their deposit does not suffer any damage as a result of a hacker attack.”
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Crypto exchanges get hacked with alarming regularity. Some top hits: Mt Gox in 2014 discovered a hack worth $450 million; hackers stole $40 million from Binance in 2019; and South Korean exchange Bithumb lost $13 million to a hacker last March. Oh, and then there was the time hackers stole $1 billion from crypto exchange Bitfinex in 2016.
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Eterbase:
2020-09-08: Hot Wallets compromised
2020-09-09: Hot Wallets compromised – Official Announcement

mood · Sep 26, 2020

Cryptocurrency Exchange KuCoin Hacked, $150 Million Moved
A lot of Bitcoin, Ethereum, and other cryptocurrency left the exchange all at once
September 26, 2020
https://decrypt.co/43015/cryptocurrency-exchange-kucoin-likely-hacked-reports

KuCoin, which touts itself as "the most advanced and secure cryptocurrency exchange to buy and sell Bitcoin, Ethereum, Litecoin, TRON, USDT, NEO, XRP, KCS, and more" has been hacked, and $150 million in funds may be gone.

The company confirmed that late on September 25 (UTC time), "Bitcoin, ERC-20 and other tokens in KuCoin's hot wallets were transferred out of the exchange."
It maintains that, while its hot wallets were hit, its cold wallets are safe.
Moreover, it claimed in its announcement, "If any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund."
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At least one admin message on KuCoin's Telegram channel indicated that users should not withdraw or deposit funds "given the situation." It claimed that "transactions are simply pending."

According to Lyu, after realizing that money was being transferred out of a KuCoin-owned hot wallet, they shut down the server. However, transfers continued because the private key to the hot wallet had been compromised.
KuCoin has not confirmed the amount that was taken.
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mood · Nov 12, 2020

Hacked Crypto Exchange KuCoin Has Recovered Most of the Stolen Funds, Co-Founder Says
November 11, 2020
https://www.cryptoglobe.com/latest/...red-most-of-the-stolen-funds-co-founder-says/

Johnny Lyu, co-founder and CEO of the hacked Singapore-based cryptocurrency exchange KuCoin, has revealed the trading platform recovered 84% of the assets that were stolen from it back in September.

KuCoin suffered a major security breach in September, in which a hacker managed to access its hot wallets and steal over $280 million worth of cryptocurrencies. The hacker is believed to have stolen over $147 million in various ERC-20 tokens, $87 million in Stellar tokens, and $30 million in bitcoin.
On social media, Lyu revealed that through “approaches like on-chain tracking, contract upgrade and judicial recovery” the trading platform has now recovered 84% of the funds stolen from it.

At the request of law enforcement, it will only publish all of the case’s details once it’s closed.
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(1/3) Latest updates about #KuCoin Security Incident: So far, 84% of the affected assets have been recovered via approaches like on-chain tracking, contract upgrade and judicial recovery. As asked by the law enforcements, we will publish all the details once the case is closed.
— lyu_johnny (@lyu_johnny) November 11, 2020
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mood · Nov 13, 2020

DeFi Platform Akropolis Hacked for $2 Million DAI
Cryptocurrency borrowing and lending service Akropolis said it suffered a "flash loan" attack
(DeFi = Decentralized Finance)
November 13, 2020
https://atozmarkets.com/news/defi-platform-akropolis-hacked-for-2-million-dai/

An unknown attacker devastated the YCURVE and sUSD liquidity pools of the Akropolis project in DAI stablecoins worth $ 2 million. The hacker hacked smart contracts that were audited twice.

We recently identified a hack executed across a body of smart contracts in the "savings pools" that have been audited twice. We are working with security specialists and on-chain analytics providers and aim to make a more detailed statement shortly. Thank you for your patience.
— Akropolis (@akropolisio) November 12, 2020
DeFi platform Akropolis hacked
According to analyst Stephen Zheng, the hacker withdrew assets in tranches of 50,000 DAI for seven hours until the liquidity in the pools was completely depleted.

DeFi project Akropolis allows you to take loans and generate profitability on cryptocurrency deposits.
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At the moment, the project team has started to perform a number of security procedures. All stablecoin pools have been suspended and exchanges have received notifications. Third-party security experts are also working with developers to investigate the issue.
AtoZ Markets has learned that the Akropolis is studying ways to compensate users for losses and will present its proposal in the near future.
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Akropolis: The Attack backlog

mood · Nov 16, 2020

mood said: ↑

DeFi Platform Akropolis Hacked for $2 Million DAI November 13, 2020
Akropolis: The Attack backlog
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Open Letter To Akropolis Delphi Hacker
November 14, 2020
https://medium.com/@akropolisio/open-letter-to-akropolis-delphi-hacker-91e883667cc

The aim of this open letter is a call for cooperation to recover the user funds of our community members and propose a bug bounty as compensation for your exploit.

We have not contacted any form of law enforcement to pursue a criminal investigation.
We would like to propose that you return the funds of our community members within 48 hours and in return we will offer a $200,000 USD bug bounty. We will take measures to protect your identity as required.

If you decide not to cooperate we will pursue criminal action and contact law enforcement.
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mood · Nov 16, 2020

Value DeFi Hacker Returns $2 Million Out of Goodwill, New Vaults Coming with “Maximum Security & Audit”
November 15, 2020
https://bitcoinexchangeguide.com/va...ew-vaults-coming-with-maximum-security-audit/

In a “complex attack” on the MultiStables vault of ValueDeFi, the attacker stole roughly $6 million.

On Nov. 14th, at 03:36:30 PM UTC, the hacker performed a flash-loan exploit of 80k ETH on Aave, which involved borrowing 116 million DAI and 31 million USDT.
The attacker returned $2 million out of goodwill, including 50k of 100k from a victim who said she is a nurse and has lost all her savings in the hack.
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mood · Nov 16, 2020

Cheese Bank's multi-million dollar hack explained by security firm
Nefarious parties are using flashloans in conjunction with stablecoins to steal DeFi funds from platforms
November 16, 2020
https://cointelegraph.com/news/cheese-bank-s-multi-million-dollar-hack-explained-by-security-firm

An Ethereum-based decentralized finance, or DeFi, platform known as Cheese Bank recently suffered a $3.3 million loss — the product of an early-November hack. The thieves utilized a somewhat newly-found weakness in the DeFi sector which harnesses flashloans.

“In the string of attacks, we have seen malicious actors use flash loans to instantaneously borrow, swap, deposit and again borrow large numbers of tokens so they can artificially manipulate the price of a specific token on a single exchange (e.g., Uniswap, Curve),” blockchain security firm PeckShield said in a blog post on Monday after citing Value DeFi and Akropolis as two other recent similar DeFi hacks.
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Value DeFi suffered a hack similar to Cheese Bank a few days ago. A sly character pilfered $6 million from the blockchain-based protocol, also harnessing USDC, USDT and DAI in conjunction with the effort.
Flash loans, a function of the DeFi ecosystem, seem to offer a hole of sorts through which to steal funds. Malicious parties also recently hacked Akropolis, which serves as another similar incident.

Referring to the Cheese Bank hack in early November, the PeckShield post detailed: “This particular hack drains $3.3 million of USDC/USDT/DAI from Cheese Bank by exploiting a bug in its way to measure asset price from an AMM-based oracle.” The nefarius parties stole the funds on Nov. 6.
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mood · Nov 16, 2020

mood said: ↑

Open Letter To Akropolis Delphi Hacker November 14, 2020
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Crypto service offers hackers bug bounty – a slap in the face to threat researchers
November 16, 2020
https://www.scmagazine.com/home/sec...nty-a-slap-in-the-face-to-threat-researchers/

Akropolis.io, a cryptocurrency loan and investment platform, offered hackers that stole the equivalent of $2 million from the service, $200,000 to return the money. The decision, say experts, sets a bad precedent that might destabilize an important security tool.

Bug bounties are traditionally payments for hackers to turn over vulnerabilities they notice in a system without first using them to sow chaos, allowing companies to plug the leak. What Akropolis is doing strikes experts in bounty and disclosure programs as crossing a line – using the good works of bug bounties to paper over what is, in effect, a ransom.

“There’s no scenario in which a bug bounty should ever be used to pay off criminal hackers for information about an exploit. That’s dangerously close to encouraging extortion,” said Jay Kaplan, CEO of Synack, a company that brings vetted hackers for what are in effect closed bounties.
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The danger, said Moussouris, is normalizing hackers holding illbegotten data or funds hostage. That would “create the wrong kind of market.”
Akropolis did not respond to requests for comment.
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mood · Nov 22, 2020

Liquid Exchange Hit by Data Breach with Users Information Likely Exposed
November 18, 2020
https://www.coinspeaker.com/liquid-exchange-data-breach/

Liquid Exchange has revealed that their platform was recently hit by a data breach as threat actors probably got access to the personal information of users. This has put them among the many other exchanges that fell for the deceptive approaches of malicious actors.

According to the CEO of the exchange, Mike Kayamori, they have identified the attack and taken the necessary action to mitigate the damage with the users of the platform strongly advised to change their passwords and security questions if necessary. However, the obtained information may put the affected users at risk of identity theft and targeted phishing campaigns.
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The Inside Story of the Liquid Exchange Breach
An investigation conducted by Liquid Exchange revealed that the malicious actors got access to the domain and the control of the account, after their domain name hosting provider in charge of one of their main domains mistakenly transferred them to the wrong destination controlled by the actors.

Before the attack was contained and the actor successfully interrupted, their document storage had already been accessed. Unfortunately, the actor compromised the infrastructure in the well-calculated attack and executed his mission.
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Cryptocurrency exchanges have become primary targets of threat actors following the recent surge of the Bitcoin price. Recently, KuCoin exchange was breached with threat actors emptying its hot wallet and fleeing with about $150 million worth of cryptocurrencies.
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Liquid: Security Incident on November 13, 2020

What happened?
On the 13th of November 2020, a domain hosting provider "GoDaddy" that manages one of our core domain names incorrectly transferred control of the account and domain to a malicious actor. This gave the actor the ability to change DNS records and in turn, take control of a number of internal email accounts. In due course, the malicious actor was able to partially compromise our infrastructure, and gain access to document storage.
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mood · Nov 19, 2020

Ethereum-based Origin Dollar Hacked for Estimated $7 Million
November 17, 2020
https://decrypt.co/48478/ethereum-based-origin-dollar-hacked-for-estimated-7-million

Origin Protocol co-founder Matthew Liu on Monday night confirmed an attack on the Origin Dollar (OUSD) vault.

"The team is all-hands on deck attempting to figure out what vulnerability was exploited and how the hacker was able to access users’ deposits," he wrote.
Though the exact exploit—some form of flash attack—isn't yet known, the Origin team estimated $7 million—a combination of ETH and DAI stablecoin—had been taken.

Origin is a blockchain-based e-commerce platform. It introduced the OUSD stablecoin at the end of September; it's backed not by fiat but by other stablecoins, including DAI.
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The attack may further undermine confidence in the security of decentralized finance protocols, many of them built on Ethereum. In the last month, Harvest Finance, Akropolis, and Value DeFi have all been attacked via flash loan vulnerabilities that have led to over $40 million in losses.
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mood · Nov 22, 2020

mood said: ↑

Cryptocurrency Exchange KuCoin Hacked, $150 Million Moved
A lot of Bitcoin, Ethereum, and other cryptocurrency left the exchange all at once
September 26, 2020
https://decrypt.co/43015/cryptocurrency-exchange-kucoin-likely-hacked-reports
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KuCoin inches closer to recovery by reopening deposits and withdrawals
November 22, 2020
https://cointelegraph.com/news/kuco...ecovery-by-reopening-deposits-and-withdrawals

In the latest step towards full recovery after a devastating hack in September, Crypto exchange KuCoin announced today in a blog post that it has “restored the deposit and withdrawal services of all tokens.”

The announcement follows a partial reopening that took place in October where users could move their BTC, ETH, and USDT off the exchange. This latest step opens withdrawals and deposits to all coins and tokens, though certain tokens may have withdrawal limits due to what the exchange called “ongoing judicial proceedings.”
The re-opening is a promising step towards normalcy after a crippling hack on Sept. 26.
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mood · Dec 5, 2020

Venezuela Arrests Suspects in $2 Million Bitcoin Heist
December 2, 2020
https://decrypt.co/50100/venezuela-arrests-suspects-2-million-bitcoin-heist

The Venezuelan Scientific, Criminal, and Criminalistic Investigations Corps (CICPC), the equivalent of the Federal Bureau of Investigation in the US, recently announced the arrest of two individuals who allegedly managed to penetrate the servers of a Venezuelan trading platform, stealing 101 Bitcoins (worth over $1.9 million).

José Manuel Osorio Mendoza, 33, and Kelvin Jonathan Diaz, 34, are accused of breaking into the servers of Bancar Exchange, one of about a dozen cryptocurrency exchanges authorized to operate in Venezuela. After circumventing the platform's security, they allegedly proceeded to make Bitcoin and fiat transfers to various accounts associated with them.
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mood · Dec 21, 2020

EXMO cryptocurrency exchange hacked, loses 5% of total assets
December 21, 2020
https://www.bleepingcomputer.com/ne...hange-hacked-loses-5-percent-of-total-assets/

British cryptocurrency exchange EXMO has disclosed that unknown attackers withdrew almost 5% of its total assets after compromising its hot wallets.

The crypto exchange had a 2273 BTC (nearly $52 million) 24-hour trading volume and 27,795 active traders according to EXMO's website.
All withdrawals temporary suspended
EXMO says that it has temporarily suspended all withdrawals after detecting suspicious and large withdrawals starting with December 21st, at 2:27:02 UTC.

"We are still investigating the incident, but as of now, the security audit report showed that some amounts of BTC, XRP, ZEC, USDT, ETC and ETH in EXMO’s hot wallets were transferred out of the exchange," EXMO said.
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Attention!

We detected suspicious withdrawal activity. All withdrawals are temporarily suspended. We're investigating the issue and taking measures to protect your funds.
If any user fund is affected by this incident, it'll be covered completely by EXMO.https://t.co/QCtOGRFE65
— EXMO (@Exmo_Com) December 21, 2020
EXMO has reported the incident to the London police and is working with their Cybercrime team to investigate the attack.
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EXMO: Important! EXMO Security Incident Update

Attention! We detected suspicious withdrawal activity on December 21st, 2020. All withdrawals are temporarily suspended.
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mood · Dec 24, 2020

Crypto Exchange Livecoin Begs Users to Stop Trading After Losing Control of Servers
Cryptocurrency exchange Livecoin claims to have suffered what it called a “carefully planned attack.”
December 24, 2020
https://www.coindesk.com/livecoin-crypto-exchange-hack

The Russian exchange said in a web post it has “lost control of all of our servers, [backend] and nodes” and pleaded with clients to cease making deposits, trading or interacting with the exchange. “We were not able to stop our service in time,” the post said.

It was not immediately clear if clients funds’ were affected in the breach. CoinGecko charts indicate Livecoin usually handles about $50 million in daily trading volume. However, in the last 24 hours volume climbed to $805 million.
Livecoin CEO Ivona Zlatova did not respond to a request for comment by press time.
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mood · Dec 25, 2020

mood said: ↑

EXMO cryptocurrency exchange hacked, loses 5% of total assets December 21, 2020

EXMO: Important! EXMO Security Incident Update
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EXMO Hackers Cashed Out $4 Million Using Poloniex
The exchange is tentatively resuming deposits and withdrawals on December 25-26
December 25, 2020
https://www.financemagnates.com/cry...-hackers-cashed-out-4-million-using-poloniex/

Recently-hacked cryptocurrency exchange, EXMO failed to recover a large portion of the stolen funds as attackers cashed out using the Poloniex exchange.

The siphoned digital currencies were estimated to be over $10.5 million, which is 5 percent of the exchange’s total assets.
The exchange is now saying that the hackers transferred and cash out as much as $4 million from the stolen funds through Poloniex – $1 million was withdrawn in XRP and $2.8 million in ZEC.
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Meanwhile, the hacked exchange is set to resume withdrawals and deposits again tentatively on December 25-26.

“All user deposits made after December 21st and up to the date of updating the addresses of deposit wallets in your accounts will be credited to your account. After we update the addresses of the deposit wallets, deposits will no longer be credited to the old addresses!” EXMO announced.
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EXMO: Security Incident Update 23/12/2020: Further Steps

mood · Dec 28, 2020

Police accuse BitGrail of ‘hacking itself’ to steal $120 million
December 27, 2020
https://coingeek.com/police-accuse-bitgrail-of-hacking-itself-to-steal-120-million/

The individual behind hacked cryptocurrency exchange BitGrail may have been responsible for orchestrating a hack which stole $120 million from the exchange, according to allegations made public by law enforcement.

Italian police have alleged a 34-year-old man from Florence, known as FF, is thought to be behind the theft from the exchange, which saw the company collapse into bankruptcy with significant losses for its users, Reuters reported.
Some 230,000 account holders at BitGrail were affected in the attack, which honed in on the platform’s reserves of Nano cryptocurrency.
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The collapse of BitGrail remains one of the largest criminal hacks in Italy and indeed the world, with $120 million sitting alongside the biggest losses from a hack so far.
While the role of FF played in the attack remains unclear, police are now looking to establish in court the level of his personal involvement in the theft.
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mood · Jan 20, 2021

Livecoin halted operations after the December attack
The Russian cryptocurrency exchange Livecoin has announced it is terminating its operation following the December cyberattack
January 20, 2021
https://securityaffairs.co/wordpress/113650/digital-id/livecoin-halted-operations.html

The Russian cryptocurrency exchange was hacked on Christmas Eve, it published a message on its website warning customers to stop using its services.

“Dear clients, we ask you to stop using our service in all meanings: don’t deposit funds, don’t trade, don’t use API. We are under a carefully planned attack, which has been prepared, as we assume, over the last few months. We lost control of all of our servers, backend and nodes. Thus, we were not able to stop our service in time.” reads the message published on the website.
Livecoin recommended users to stop depositing funds and making transactions, it also notified local law enforcement.

The administrators of the platforms informed its customers to have lost control of some of its servers, the attack was not opportunistic, it appears to be well planned.
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longshots · Jan 21, 2021

Look, I'm sorry [not really], but I crack up every time I read one these articles.
It would be interesting to see a list of cryptocurrency exchanges, operating for at least 2-3 years, that have not been hacked.

mood · Jun 23, 2021

Founders of South African Bitcoin exchange disappear after $3.6 billion 'hack'
Investors can't find the Cajee brothers.
June 23, 2021
https://www.engadget.com/africrypt-bitcoin-disappearance-174636634.html

Cryptocurrency investors in South Africa may have lost nearly $3.6 billion in Bitcoin following the disappearance of two brothers associated with one of the country’s largest cryptocurrency exchanges.
According to Bloomberg, a law firm in Cape Town says it can’t locate Ameer and Raees Cajee, the founders of Africrypt. In April, the exchange told its investors it was the victim of a hack and asked them not to report the incident to the authorities on account it would “slow down” the process of recovering their missing money.

“Africrypt employees lost access to the back-end platforms seven days before the alleged hack,” the law firm told Bloomberg. The outlet attempted to call both Cajee brothers multiple times only to get their voicemail each time.
Complicating any recovery attempt is that South Africa’s Finance Sector Conduct Authority can’t launch a formal investigation into the incident because cryptocurrency isn’t legally considered a financial product in the country.
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Another Cryptocurrency Exchange Gets Hacked for Millions

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Another Cryptocurrency Exchange Gets Hacked for Millions

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