Coinrail loses over $40M in Cryptos due to hack

The South Korea based crypto exchange, Coinrail announced that it has lost cryptocurrencies that appear to be of worth $40 million following a hacking attack on its system.

As reported by its website, the exchange has already suspended its service due to this cyber intrusion. The precise amount of losses hasn’t been declared yet, however it is confirmed that the exchange platform has lost a wide number of ERC-20 based tokens.

Only a few names have been disclosed so far including ATC token from Aston, NPER token from NPER, and NPXS token from Pundi X Project.

Speculations have been made about the total amount of losses and it is believed that the Coinrail’s total losses amount to around $40 million at the moment of the hack.

Investigations about the hacking attack have gained speed and Coinrail is working hard to find a cue. It is assumed that Coinrail has identified an Ethereum address as associated with the hacker and has alerted about it to other projects. That address is currently flagged as “Fake_Phishing1432.”

Interestingly, suspicious activity has been recorded from this address. According to the data registered at Etherscan.io, this address received 2.6 billion NPXS tokens at IDEX from another account and it immediately tried to sell about 26 million tokens. The other address is also now flagged as a suspicious account, ‘Fake_Phishing1431.’

The Fake_Phishing1431 also received various types of cryptos from one common address numerous hours before Coinrail blew the whistle about the hack into its system. This address received tokens from several projects such as Jibrel Network, Tron, Kyber Network and Storm.

According to Coinrail and Pundi X, the assets sent from Fake_Phishing1432 have been frozen by IDEX and the NPXS tokens have not been liquidated.

Coinrail has reported that 70% of its total reserves are not accessible through the internet and hence are completely safe. These reserves are shifted to a cold wallet, making them highly secure.

From the remaining 30% reserves, two-thirds have been frozen including NPXS, ATX, NPER while investigations are going at full throttle on the remaining one-third by police, project developers and respective exchanges.

CoinMarketCap indicated that Coinrail ranked just inside the top 90 exchanges in the world in terms of trade volume and had approximately $2 million 24-hour trading volume on its site. Soon after the attack, the site was suspended for system maintenance.

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About the Author: BJ Hetherington

BJ is the lead editor of Crypto Post Gazette. Fluent in French and proficient in Spanish and Arabic, he focuses on mobile trends and tech innovations. BJ is a graduate of York University In Toronto. BJ was an early adopter of cryptocurrencies having bought 100 bitcoins in 2010. To contact BJ, just click here

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