Israel’s Bancor Latest Crypto Exchange Hacked, Suffers USD23.5m Loss of Crypto Tokens

A company trading crypto-currencies and named as Bancor while promoting an exchange service in a decentralized fashion recently became a victim of hack, losing approximately USD23.5m worth of crypto tokens the company's consumers had reportedly acquired.

Bancor, situated in Israel, grew tall with funds amounting USD150m during one ICO in 2017 while it provides wallets to consumers having an exchange service built into it. On July 10, Bancor declared that hackers had accessed a wallet the company utilized for enhancing certain smart contracts. Consequently, the thieves managed stealing Ethereum worth USD12.5m, NPXS tokens from Pundi X worth USD1m and Bancor's BNT worth USD10m.

Bancor in a tweet stated that it had temporarily stopped trading, as investigation was on into the security problems. However according to the company, there have been no straight cut hacking into its consumers' wallets. After many hours, the company stated in detail the different amounts it lost in the theft. Cryptoslate.com posted this online dated July 10, 2018.

On its website's homepage, Bancor visitors are since diverted onto certain maintenance message alongside an announcement of getting back the usual service in 'minutes' time instead of hours. Fortunately, consumers' funds are undisturbed as Bancor doesn't hold any digital currency inside hot wallets alternatively hold it on behalf of its consumers.

It's been determined that the hacker made use of Changelly a service that helps convert tokens instantly. On July 9, Ethereum founder Vitalik Buterin stated in annoyance that digital currency exchanges which functioned in a centralized way should be put into flames inside hell. Nevertheless, it's also definite about decentralized exchanges that they aren't essentially immune to security flaws no matter whether the degree isn't like that of centralized ones.

In the meantime, prominent seizures of crypto exchanges keep on troubling the industry while causing difficulty in worldwide mass adoption. More updates are yet to come from Bancor regarding its exchange intrusion.

Just days prior to Bancor's hack, the company voiced appreciation of Buterin's remarks. On the unfortunate day of Bancor attack, the company's token value took a dip of 14 percent from approximately USD3.15 to USD2.72.

» SPAMfighter News - 7/19/2018