Cryptocurrency Security

A hiccup in security leaves start-up cryptocurrency worth $13.5 million lost in the wind.

Cryptocurrency trading and conversion platform Bancor suffered a major security breach as they saw their coffers shy of $13.5 million crypto tokens. The Israeli start-up reported that one of their cryptocurrency wallet faced a comprising situation and lost $12.5 million worth of ethereum tokens and a million tokens of a lesser known crypto Pundi X.

Notably, ethereum already went down 7.7% and Pundi X lost almost 15% of their value after the theft came to light. However, the company clarified that no user wallet was compromised, or any information was released during the theft.

Bancor is a firm that specializes in decentralized liquidity in which their consumers can enter into a “smart contract” in which Bancor holds their cryptocurrencies for them and convert them into any digital coin that the user demands. The idea behind Bancor as they market is to remove any kind of middleman from dealing and trading any kind of cryptocurrencies and give the bandwagon completely into the hand of the individual.

Bancor however were able to save $10 million of their own tokens by immediately freezing the transaction. They did take a hit from the trial of security breach as their own currency went down 16.6%. At the time of writing of this article, Bancor’s website was shut down with the message,” Bancor is doing some maintenance and will be back online soon.”

Despite the large security breach, Bancor did clarify that they do not hold any kind of the consumers assets and their wallets and funds were safe.

Last year’s ICO, Bancor raised almost 183 million worth tokens from ethereum which results in roughly 396,720 tokens.

This is not the first time that firms like Bancor had to deal with cyber security thefts. Earlier last year, Japanese crypto exchange Coincheck was subjected to theft of NEM tokens worth $530 million at that time. Notably, it is still the largest digital theft of cryptocurrencies. Furthermore, $480 million worth of bitcoins have gone missing in mining since its inception.

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