An Israeli startup and token creation platform Bancor in its Twitter published an information, according to which the vulnerability of its platform allowed an attacker to steal 24,984 ETH (about $ 12 million), $ 1 million in Pundi X (NPXS) tokens and $ 10 million in its own BNT tokens.
Crypto Fail: Bancor has lost $13.5 Million
As developers noted, the compromised wallet was used to update the smart contract. Later, with the help of this wallet, the above-mentioned assets were withdrawn.
It is noteworthy that the project team was able to freeze the withdrawal of 3.2 million BNT ($ 10 million), since the platform protocol provides a quick response to possible threats in order to minimize damage to the community.
The project team noted that the users’ funds are safe. They added that the platform is offline for the time of the incident investigation.
“We were able to freeze the stolen BNT, limiting the damage to the Bancor ecosystem from the theft. 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 withdrawal of ETH and NPXS still took place. Now the project actively cooperates with dozens of crypto exchanges to track stolen funds and prevent their sale by intruders. Bancor team also promised to inform the community about the progress of the investigation through Telegram and Twitter. Bancor is currently unavailable. As Cointelegraph notes that CEO Changelly confirmed that hackers transferred part of the stolen funds to his platform.
We remind, Token Service Bancor raised $ 153 million in July 2017 in a few hours. The platform allows to exchange ERC-20 tokens via smart contracts outside of trading platforms.
Against the backdrop of the incident, Ethereum price, according to the Coin Market Cap, fell by 9%, to $ 440 per one coin. BNT price fell immediately by almost 13%, to $ 2.33.