Wednesday July 11, 2018

Hackers Steal $13.5 Million in Cryptocurrency From Israeli Based Bancor Exchange

Israeli based Bancor exchange was the site of a breach in which $23.5 million was initially stolen from its customer's cryptocurrency wallets. $12.5 million in Ethereum, $1 million in Pundi, and another $10 million in Bancor tokens was stolen when a wallet used to upgrade smart contracts was compromised. Bancor was immediately able to stop the transfer of Bancor tokens so that saved them $10 million in potential losses. They hope to work with other exchanges to stop the trading of the remaining $13.5 million in cryptocurrency. I wonder how affected customer view those smart contracts now?

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"With Bancor exchange, every transaction is executed directly against a smart contract. This means that converting a cryptocurrency does not require matching two parties in real-time with opposite wants; rather, it can be completed by a single party directly through the token’s smart contract." reads the company.

"It is not possible to freeze the ETH and any other stolen tokens," reads the statement published by Bancor. "However, we are working together with dozens of cryptocurrency exchanges to trace the stolen funds and make it more difficult for their thief to liquidate them."

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