bancor dex crypto exchange

Bancor Exchange Hacked For $23.5m Worth of Crypto

 

The latest cryptocurrency exchange has gone down, and surprisingly it was the decentralized exchange, Bancor. The news came as the Bancor team had to halt trading and gave an announcement via their Twitter stating at 00:00 UTC a security breach had occurred where a wallet they used to upgrade smart contracts was compromised. It seems user wallets were not affected and it was only that particular wallet owned by Bancor.

The team reported that 24,948 ETH ($12.5m) was stolen as well as 229,356,645 NPXS ($1m) and 3,200,000 BNT ($10m). While Bancor was able to freeze the stolen BNT as it is their network token, the stolen ETH and NPXS were not able to be frozen.








Bancor has stated they are working with several cryptocurrency exchanges to trace the stolen funds in order to make it difficult for the thief to liquidate and cash out. More updates are to be given as new developments are made. For now, the network has shut down trading while it works on investigating the hack.

The Bancor Protocol has received quite a bit of backlash on Twitter, especially when it comes to the fact that they’re able to freeze funds. While including scripts that allow freezing funds in emergency security breaches like this can be beneficial in minimizing damages to the network, many are complaining that the exchange is not truly decentralized if the Bancor team has this ability.

 

The news of the exchange’s theft does not come as a huge surprise as Bancor is one of several cryptocurrency exchanges hacked this year. According to CipherTrade, a data security company, exchange thefts are reported to be up 3 times as much as 2017 in just half of 2018. Following the news of Bancor’s hack, the BNT token has dropped over 14% falling from $3.15 to $2.64.



 

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