Bancor a popular decentralized cryptocurrency platform recently stop its operations on July 9, Monday due to the security breach that cost the platform approx $12 mln. The Breach and halted operations of Bancor was confirmed by the post on Twitter. According to which the platform “Bancor” says that it will conduct some investigation work before releasing any full statement in the public.
In addition to this, the tweet also stated “This morning (CEST) Bancor experienced a security breach. No user wallets were compromised.”
“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.”
Bancor also mentioned in their statement that they are doing their best to resolve this issue as soon as possible by taking the help of every possible resource. Although the details regarding the breach are still under investigation. Only the things which have come in front till now is that a wallet which is used to upscale some smart contracts was compromised. The hack faced by the Bancor not only affects its users but also everyone belongs to the crypto verse. Charlie Lee who is the founder of Litecoin also took a step against the “decentralized” wallet.
As per the press time Monday, the homepage of the platform redirects users to a maintenance message which shows that instead of hours or longer the page will return to its regular service in some minutes.
The funds of the users will also remain safe and intact as the platform didn’t keep any cryptocurrency in their hot wallets.
In addition to this, some tokens were also exchanged by the malicious party through Changelly which is an instant conversion service as told to the Cointelegraph.
Konstantin Gladych the CEO stated that “Part of the stolen tokens were exchanged via Changelly” He further added in his statement that “Afterwards the tokens were frozen by the Bancor Foundation in our contract. Now we are helping track the stolen funds.”
Other related sources also stated that the tokens that were stolen include the native tokens of Bancor named BNT. Those tokens were frozen by the platform successfully. 25,000 Ethereum i.e. ETH tokens which cost around $12.2 mln and 300,000 Pundi X (NPXS) tokens which cost around $1200 is in the process of tracking along with the help of some other exchange platforms.
The Bancor becomes famous by the act when in three hours it successfully raises $153 mln in ETH at the time of its ICO (initial coin offering) held in 2017.
The structure which is decentralized in nature has a major contribution in its security record. Although throughout the year the maximum hacks have continued to rock the centralized cryptocurrency exchange especially the Coincheck.
The co-founder of Ethereum, VitalikButerin is also against this centralized exchanges and has shown heavy criticism regarding the same. He further added to his statement that “hopes they burn in Hell.”