Cryptocurrencies: Another Day, Another Hacking

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Story So Far

As developers focus their time on moving the Cryptocurrency Industry and their markets forward – to keep up with the fast pace of the digital economy – in the all-important code work.

As reported before, we can only expect more and more cases of false attacks and hacking over the coming months. Developers are frantically trying to keep up with the daily changes in the Cryptocurrency Industry, which means that the all-important double checks on coding are being missed. This is now pretty standard across the whole industry, and cracks have been appearing for some time now.

Things will eventually settle down, and the code checks will happen, and the standard operating procedures / best practice documentation will be put into place. However, until this does happen industry-wide, stories like this will continue to pop up regularly.

So What Happened?

The latest victim is South Korean Cryptocurrency exchange Coinrail. The exchange was allegedly hacked over the weekend, and although there are no confirmed reports on the exact amount that was stolen, it is rumored to have been $40 million. This is a huge amount by anyone’s standards. Coinrail – before the hack – was listed as the 90th biggest platform as confirmed by CoinMarketCap. The exchange received $2 million plus within a 24-hour timescale.

Several tokens were stolen including the NPXS token from Pundi X, ATC from Aston and the NPER’s NPER token. Again, no figures have been given on the exact amounts that were taken. In response to the hacking, Coinrail has stopped all services while it looks into the attack and sorts out the repercussions.

One of those affected by the crime – Pundi X – has commented that the following amounts could well have been stolen: 1,927 ether; 2.6 billion NPXS; 93 million ATX; 831 million DENT coins. There are also another six tokens reportedly looted, but once again figures have not been disclosed.

Coinrail informed all of those affected just as soon as the hack had taken place. The team had identified the hacker early on and released that particular Ethereum information to one and all.

The Latest News

Further research has shown that a lot of the cryptocurrencies that were stolen were tried to be moved on and sold through different exchanges straight after the hack. There is the suggestion that some of these assets were stopped before the transfers happened. However, at the moment, nothing is 100% sure on what has been frozen and what went through. The Coinrail website has since stated that 70% of its assets have been transferred to a cold wallet (i.e., not available via the internet) and are now safe.

This leaves the remaining 30% of assets that were attacked. Again the Coinrail website has been updated confirming that 66% of this figure is frozen, leaving only 33% unaccounted. This final piece of the pie is currently under investigation with the police, investigators, exchanges, and developers. It is hoped that in the next few days, answers on these outstanding amounts can be obtained.

Hopefully, the simple fact that another large hack has occurred will encourage developers to make sure that any changes they make to their code on a daily basis do not have huge negative implications on their software.

Kinsley Moore

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Kinsley Moore

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