Last Sunday, South Korea based cryptocurrency exchange Coinrail announced that it has been hacked. Losses incurred from the incident reached as much as $40 million worth of cryptocurrencies, according to various sources.
Although large in itself, this amount is relatively small compared to those that really move Bitcoin prices in the market. The hacking incident had nothing to do with the recent dive in Bitcoin prices, according to CCN. Much of the price decrease came only after 15 hours of the incident which is too far away from the announcement. This then makes a point as to how little the incident had an influence over Bitcoin’s prices.
Coinrail itself did not disclose a lot of details regarding the breach, and did not even confirm the total amount involved. Some of the tokens involved were the ATC token from Aston, NPER, and the NPXS token from the Pundi X project.
According to a post made by Pundi X, 93 million ATX, 831 DENT, over 1,900 ethers, and 2.6 billion NPXS tokens, along with 6 other tokens were taken during the breach.
Upon investigating the hack, Coinrail cited an Ethereum address that may have belonged to the hacker. This address was flagged “Fake_Phishing1432”. The suspicions grew stronger when the address attempted to sell the NPXS tokens it just took through IDEX. The address that was to buy the tokens is now flagged as “Fake_Phishing1431”.
Just hours before the hack was reported, said addresses were shown to have transacted with a wide range of cryptocurrencies aside from the ones identified – ATX, DENT, ETH, and NPSX.
Once IDEX knew about the situation, the assets coming from the suspicious address – Fake_Phishing1432 were frozen. These cryptocurrencies also appeared to have been sent to yet another crypto exchange – EtherDelta.
Whether the stolen cryptocurrencies were liquidated successfully or not remains unclear at this point. Affected exchanges Coinrail and EtherDelta were not able to provide an updated statement regarding the matter.
Coinrail reassured the public by stating that 70% of its reserves were kept safe as the funds were moved to a cold wallet outside the internet’s reach.
This, however, means that the compromised funds reached 30% - two-thirds of which were frozen. The remaining one-third are under investigation by relevant parties.