Cryptocurrencies Worth $13M USD Stolen From Decentralized Crypto Exchange Bancor

News | July 10, 2018 By:

Decentralized crypto exchange Bancor has gone offline after hackers managed to steal about $13 million in cryptocurrencies from one of its online wallets.

Bancor, which last year raised $153 million in its initial coin offering (ICO), said that it is currently investigating the nature of the incident but confirmed the attack only impacted trading operations. User funds remain intact due to Bancor not holding any cryptocurrency in hot wallets or otherwise on their behalf.

“This morning (July 9), Bancor experienced a security breach. No user wallets were compromised,” the company said in a Twitter post. “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.”

Tokens stolen in the hack included 24,984 ethereum ($12M USD) and 229.3 million NPXS tokens ($1M USD). The hackers also stole about $10 million worth of Bancor’s native token known as BNT, but the platform was able to freeze the stolen tokens using a mechanism built into the Bancor Protocol.

“We were able to freeze the stolen BNT, limiting the damage to the Bancor ecosystem from the theft,” the company said. “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.”

However, the stolen ETH and NPXS tokens are still compromised. Bancor said 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.”

Changelly CEO Konstantin Gladych said in a statement that part of the stolen tokens were exchanged via Changelly.

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

The Bancor website remains offline, but the company said they have identified the cause of the breach and is hoping to resume its services shortly. The Bancor team also said that they would continue to post updates on any further developments on their Telegram channel and on Twitter.