BANCOR was attacked by hackers & lose $23.5M
Hacker attacked a virtual currency exchange named BANCOR and the attack has brought $23.5M in losses to the trade.
A Bancor wallet got hacked and that wallet has the ability to steal coins out of their own smart contracts. 🤦♂️
An exchange is not decentralized if it can lose customer funds OR if it can freeze customer funds. Bancor can do BOTH. It's a false sense of decentralization. https://t.co/22UYygIhEF
— Charlie Lee [LTC⚡] (@SatoshiLite) July 10, 2018
The BANCOR exchange lost mainly the Ethereum and the BNT tokens issued by the transaction itself. Currently, the exchange has stopped trading for maintenance.
At present, BANCOR has issued a notice stating that no users have suffered losses in the attack. The exchange itself mainly retains the stolen virtual currency.
Urgently freeze stolen BNT tokens:
The BANCOR exchange immediately froze the stolen BNT token after the attack was discovered, but the stolen virtual currency such as Ethereum could not be processed.
BANCOR said it will organise the hackers to sell the stolen virtual currency through cooperation with other exchanges and has now obtained the hacker’s wallet address.
But this kind of measure can’t lock the stolen virtual currency 100%, so in the end, the lost virtual currency must still be sold by the hacker.
The emergency freeze exposes the real face of the exchange:
BANCOR advertises itself as a decentralised exchange, the so-called decentralised exchange that the platform itself does not handle the currency transactions between users and users.
However, more and more users are now concerned about BANCOR freezing the stolen virtual currency, which can freeze the transaction between the actual users of the exchange.
So for BANCOR, the virtual currency is now stolen is not the biggest problem. The question is how to explain to the user the freezing of this virtual currency.