Bancor Sees $24 Million In Cryptos Stolen
On July 9th at 8 AM (UTC), Bancor released a Tweet noting that its web service would be closed down for maintenance. This announcement, which came out of nowhere, got some users worried, as they wondered what had occurred.
A few hours later, another Tweet was issued bringing clarity to the situation, writing:
“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.”
According to details released in an update, a wallet used to update smart contracts was compromised by an unnamed attacker. The hacker or group of hackers were able to withdraw 24,984 ETH, along with two ERC-20 tokens, which are NXPS and the in-house BNT.
The total amount of funds stolen amounted to $24 million, but the update stressed that no user wallets were compromised.
Here is the latest update on the recent security breach: pic.twitter.com/JroypFvBri
— Bancor (@Bancor) July 9, 2018
Charlie Lee went on Twitter to express his disbelief about the “false sense of decentralization” Bancor was pushing, as a true DEX should not be allowed to freeze user funds. The platform implied that it only had the best intentions, but the debate around this pressing topic will continue, especially as this situation unfolds further.
A Bancor wallet got hacked and that wallet has the ability to steal coins out of their own smart contracts. 🤦♂️
An exchange is not decentralized if it can lose customer funds OR if it can freeze customer funds. Bancor can do BOTH. It’s a false sense of decentralization. https://t.co/22UYygIhEF
— Charlie Lee [LTC⚡] (@SatoshiLite) July 10, 2018
As of the time of press, BNT has fallen by 14% on the day, underperforming Bitcoin by 13%. But since its fall on the announcement of the hack, BNT has found a home at ~$2.65, holding at that level for the time being.