Bancor Cryptocurrency Exchange Losses $23.5 Million in a Recent Security Breach

Cryptocurrency exchange platform, Bancor, reportedly halted operations as it explores what it calls a “security breach” supposedly involving over $23.5 million, a Twitter post on Monday, July 9 affirmed. The platform says the halt is particularly to permit investigative work preceding a full articulation being discharged “shortly.”
The Israeli start-up said that a digital currency wallet on its system had been attacked, prompting the burglary of 3,200,000 BNT (worth $10 million), 24,984 ETH (about $12.5 million) and 229,356,645 (about $1 million) of the lesser-known token Pundi X (NPXS).
According to the tweet:

“To complete the investigation, we have moved to maintenance and will be releasing a more detailed report shortly. We look forward to being back online as soon as possible.”

In the wake of the security breach, Bancor’s head of communications, Nate Hindman, said: “We were able to freeze the stolen BNT, limiting the damage to the Bancor ecosystem from the theft. The ability to freeze tokens was built into the Bancor Protocol to be used in an extreme situation to recover from a security breach, allowing Bancor to effectively stop the thief from running away with the stolen tokens.” Hindman further explained noting that

“It is not possible to freeze the ETH or any other stolen tokens. However, we are now working with dozens of cryptocurrency exchanges to trace the stolen funds and make it more difficult for the thief to liquidate them.”

Hindman also said that Bancor “has identified the cause of the bridge and remove the vulnerability” and “We expect Bancor to go back online in the next 24 hours. We will continue to post updates as and when appropriate on our Telegram channel and on Twitter”
Konstantin Gladych, the CEO of Changelly, revealed that “Part of the stolen tokens were exchanged via Changelly,” he then added that: “Afterwards the tokens were frozen by the Bancor Foundation in our contract. Now we are helping track the stolen funds.”
Bancor’s official webpage is currently down, with a message that: “Bancor is doing some maintenance and will be back online soon.” Underneath that is a further explanation that reads: “Bancor does not hold your assets. Your wallet and your funds are always safe, secure and under your possession on the blockchain at all times.”

Previous Cases of Cyber Attacks on Crypto Exchange Platforms

The burglary at Bancor is only the most recent case of hoodlums focusing on computerized token companies. Prior this year, Japanese cryptocurrency trade platform, Coincheck, was hacked in what was tagged to be the biggest advanced cash heist ever. Numerous NEM tokens, worth more than $530 million altogether at the time, were stolen by cyber criminals.
Cases like this reverberate a standout amongst the most outstanding examples of digital currencies being stolen. In 2014, the now infamous exchange, Mt. Gox, conceded that $480 million in bitcoins had disappeared.

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