Security Breach in DEX Bancor, Down for ‘Maintenance’

Jul 9, 2018 at 19:30 Update Date :Jul 9, 2018 at 19:30 UTC

Bancor, a decentralized cryptocurrency platform, has temporarily suspended operations from 9th July, Monday, in order to investigate a “security breach” that involves around $12 million. After going offline, the company has taken to Twitter to report the breach and has stated that “no user wallets were compromised” as a result of the incident. Bancor did not hold any cryptocurrency in hot wallets or otherwise on behalf of users and hence, their accounts have not been affected by the breach. Bancor has further tweeted that it has gone into “maintenance” for the sake of a transparent investigation and hopes to return to its online space soon, as well as reveal details that come up in the inquiry. Bancor is said to have been partnering with other exchanges to track and revive the lost tokens.

The offending parties are reported to have exchanged some of the laundered tokens with the aid of the instant conversion app Changelly. Further reports claim that the stolen tokens included BNT, Bancor’s own token variant, which the company has been able to freeze. Although the firm has claimed user wallets were not compromised, conjecture on Twitter has indicated some funds linked to the exchange platform might have been affected, although none of it is verified yet. One commentator has claimed that about 25000 ETH was taken out of Bancor addresses.

Bancor representatives have remained tight-lipped about such conjectures and have not answered questions about when it would be back online. The start-up had peaked in popularity after it managed to raise $153 million in ETH within a span as short as 3 hours during its Initial Coin Offering (ICO) in 2017. While this was an amount unheard of back then, it has since been surpassed by Telegram, and later, EOS. Besides serving as a decentralized exchange, Bancor also provides for the creation of fresh cryptographic tokens.

This security breach appears to have left a dent in the price of Bancor’s native token, BNT. CoinMarketCap reports that the price of the token has fallen by around 14% over the course of last day and is currently being traded at approximately $2.73.

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