Decentralized Exchange Bancor Shuts Down Following $12 Million Security Breach

Jul 9, 2018

Decentralized cryptocurrency exchange Bancor confirmed in a Twitter post this morning that the platform’s security was breached by hackers. Following the attack, Bancor shut down its site for maintenance and froze its accounts. Reports at this time are that all funds in user wallets are safe; however, Bancor’s private reserves were compromised.

Reports released to Cointelegraph reveal that 25,000 Ethereum (ETH) were stolen along with 300,000 Pundi X (NPXS). Despite Bancor successfully freezing its native BNT token during the attack, the hackers still successfully got away with over $12 million in cryptocurrency. Bancor has now launched an investigation to track down the stolen funds.

“Part of the stolen tokens were exchanged via Changelly,” said Changelly CEO Konstantin Gladych. Company’s like Changelly, which offer instant cryptocurrency conversion services, are often used by cybercriminals to cover their tracks after an attack.

Gladych continued, “Afterwards the tokens were frozen by the Bancor Foundation in our contract. Now we are helping track the stolen funds.”

As a decentralized exchange, Bancor has up until today managed to secure itself from the litany of hacks plaguing centralized cryptocurrency exchanges. While its certainly good news that no user funds were stolen, today’s attack adds one more to the list of exchange hacks that have created headlines throughout 2018.

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Jacob Godshall is a former professional poker player turned cryptocurrency enthusiast. He is a contributing writer at Unhashed, and aims towards furthering the spread of ideas and important information surrounding all things crypto. In his spare time, Jacob enjoys reading and making electronic music

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