Trade.io, a swiss cryptocurrency exchange has suffered a 50 million token loss in a cold wallet theft that was reported to have taken place over the weekend. Jim Preissler, the CEO of the exchange stated that the malicious act could be related to an external breach from competitors.
Trade.io Cold Wallet Theft
The theft of the trade.io token is not so surprising because of the trend of crypto theft and hack in the community, what’s surprising, however, was the way the funds were moved as explained by the CEO, Jim Preissler. Preissler noted that the 50 million TIO stash the thief made off with was from one of the cold wallets of the firm.
According to the exchange, none of its cold wallet; neither a USB device or a similar crypto storage device was connected to the internet, or the bank based safety deposit box in which it was stored was breached before the theft.
The security of the exchange was alerted after lunchtime on Saturday that a movement of its ERC-20 derived token from cold storage and some of the stash TIO was traced to two cryptocurrency exchanges Kucoin and bancor, where about $200,000 worth of the token was traded.
Trade.io’s Reaction Against The Theft
Trade.io has taken steps to curb the impact of the theft after it was alerted of the situation. The action is inclusive of a suspension of TIO trading on its platform and also the two other exchanges involved, Kucoin and Bancor where the token was noted to have been traded. Also, the exchange has made an effort to see a similar ban effective on Gate.io and HitBTC but was unresponsive.
Further, the Trade.io board has slated a meeting for Monday to discuss the process of forking the stolen token, which will render the 50m TIO useless. However, this came with a notice that any crypto holding of TIO made after 0840am EST on Saturday on any of the unresponsive exchange are not eligible for the fork.
Meanwhile, normal operation will continue on the cryptocurrency exchange except for the suspension of the TIO market on the exchange, as an effort on its game plan for salvaging the situation will be made.
The token stolen which were part of the exchange liquidity pool was described as probably the act of an insider working with the exchange competitors. Priessier noted that it is obvious that the positive momentum the exchange has made in the past month has become a focal point for competitors and the firm will not submit to the malicious act. He also noted that the exchange has the strongest community in the crypto space and assures that it will only get stronger as a result of this type of action or similar form in the future.