Technology: The company has asked users to no longer deposit cryptocurrency into their Liquid wallets until further notice.


Jonathan greig

Monday 23 August 2021

Japanese cryptocurrency exchange Liquid announced that more than $ 97 million in cryptocurrency was stolen in an attack that occurred last Thursday morning.

In a statement, the company said its teams “detected unauthorized access to some of the cryptocurrency wallets managed by Liquid” and subsequently discovered that a total “of approximately $ 91.35 million in assets have been moved out of the Liquid portfolios by an unauthorized party ”.

“Of this amount, $ 16.13 million in ERC-20 assets have been frozen (deactivated for on-chain movements) with the help of the community,” the statement said. “69 different cryptocurrency assets were hijacked and sent to other exchange platforms. Assets placed on Liquid Earn are not impacted. “

The company urged its users to refrain from depositing cryptocurrency assets in their Liquid wallets until further notice. It also announced that it had stopped all current withdrawals. Withdrawals and deposits in fiat currency are still available, along with other services, such as trading and Liquid Earn.

Liquid is evaluating how the attack happened. Liquid is one of the most important exchange platforms in the world. Data from CoinMarketCap shows that Liquid has processed over $ 133 million in transactions in the past 24 hours.

“During this difficult time, we greatly appreciate the support of our clients, other exchanges, security experts and the broader crypto community. Liquid will continue to do everything in its power to mitigate the impact of this incident and restore full service as soon as possible, ”the company said in a statement.

While still unknown, Liquid adds that the attacker used specific wallets to steal the funds, and that he took a wide variety of cryptocurrencies.

Elliptic, a blockchain analytics company, wrote a report on the attack and found that $ 32.5 million in Ether was stolen, as well as $ 12.9 million in XRP, $ 4.8 million dollars in bitcoin, $ 200,000 in Tron, $ 9.2 million in stablecoins and $ 37.4 million in other currencies.

This theft “includes $ 45 million in Ethereum tokens, which are currently converted to Ether using decentralized exchanges (DEX) such as Uniswap and SushiSwap. This allows the hacker to prevent these assets from being frozen – as is possible with many Ethereum tokens, ”the company explains in its report.

This is not the first cyberattack Liquid has faced recently. Last November, the cryptocurrency exchange portal revealed a security breach that involved a breach of employee email accounts and then a hub to its internal network. The attack was stopped before the hacker managed to steal funds.

An investigation revealed that the hacker managed to gain access to personal information from Liquid’s database which stored users’ details like their name, home address, email, and encrypted password.

Since 2017, there have been multiple attacks on cryptocurrency platforms like Coincheck, MyEtherWallet, BlackWallet, EtherDelta, Etherparty, Classice Ether Wallet [1, 2, 3].

This is the second major attack this month against a cryptocurrency exchange, following the theft of more than $ 600 million from Poly Network. The incident took an odd turn when the hacker returned almost all of the stolen money, hinting that he was interested in accepting Poly Network’s offer of $ 500,000 in return for the return of the bounty money: “I am considering accepting the bounty as a bonus,” replied the hacker in a message embedded in the returned crypto assets. Although he returned much of the money, the hacker kept around $ 200 million in assets, locked behind a password.

Poly Networks issued a strange statement, calling the hacker “Mr. White Hat”, and pledging to work with that person. On Twitter, the company undertakes not to prosecute the hacker if he presents himself to them. “In order to thank and encourage Mr. White Hat to continue to contribute to the advancement of security in the blockchain world with Poly Network, we cordially invite him to become the Chief Security Advisor of Poly Network” , proposes the company in its press release. “Poly Network had previously promised to reward Mr. White Hat with a bug bounty of $ 500,000, but he did not accept it and publicly stated that he had considered offering it to the tech community who helped blockchain security. We fully respect Mr. White Hat’s thought and, to express our gratitude to him, we will still transfer this $ 500,000 bonus to a wallet address approved by him, so that he can use it at his own convenience. guise for the cause of cybersecurity and to support more projects and individuals. “

The hacker who stole more than half a billion dollars from the Poly Network cryptocurrency platform has …

Cyber ​​attack
Digital transformation


Jonathan greig

Monday 23 August 2021

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