Cryptocurrency start-up aches security crack leading to theft worth $13.5 million

Market - Mohit Shah - Jul 11,2018

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cryptocurrency start up aches security crack leading to theft worth dollar 135 million

Bancor, an Israeli start-up, issued a statement to report that its cryptocurrency wallet had been breached; a theft worth $12.5 million in digital currency (ethereum) along with $1 million worth of a lesser-known token is involved.

On Monday, the Israeli start-up said that a cryptocurrency wallet associated to its network was compromised. This has caused a theft worth $12.5 million in ethereum plus $1 million of Pundi X tokens. Post this news, ethereum has dropped almost 4 percent in the last 24 hours, whereas Pundi X has suffered a slash ranging close to 11 percent.

Releasing a further statement, the company announced that “no user wallets” were compromised in this breach.

Currently, Bancor’s site is down and a message is being flashed which says, “Bancor is doing some maintenance and will be back online soon.” The company has promised it will make sure to prevent $10 million from its own BNT crypto tokens from expected threats. This step would be initiated by simply freezing the funds.

It is also noticed that, the company has upturned 396,720 ethereum tokens valued almost $183 million on Tuesday from its early coin offering (ICO) as recorded last year.

In the earlier half this year, Japanese crypto exchange named Coincheck got hacked. It was believed to be the largest digital currency robbery till date. Almost hundreds of millions of NEM tokens, valued more than $530 million were mugged.