Bancor Network Incurs ‘Security Breach: $23Mln Worth of ETH and other Tokens Stolen
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Bancor Network Incurs ‘Security Breach’: $23Mln Worth of ETH and other Tokens Stolen

Decentralised crypto token exchange, Bancor has been briefly disabled on Monday after the team informed the community of a “security breach” which involved more than 12 million USD worth of three famous cryptocurrencies: Pundi X (NPXS), Bancor Network Token (BNT) and Ethereum (ETH).

At 1:15 pm (IST) on Monday, the Swiss-based Bancor wrote on Twitter to update the customers on the latest news regarding the major hacking incident that took place around 5:000 pm (IST) on Sunday.

This tweet came right after the tweet where Bancor declared that their Decentralised Crypto Exchange has become one of the most used decentralized crypto exchange and that it has “experienced a security breach.” Just three hours before this it was announced by them that the Bancor Web App was “down for maintenance.”

While Bancor disclosed that “details of the breach are still being investigated,” they did affirm various facts regarding which cryptocurrencies were caught up in the hacking incident.

A total of three cryptocurrencies were involved: 229,356,645 NPXS (~$1 million), 24,984 ETH (~$12.5 million) and 3,200,000 BNT (~$10 million). These three cryptocurrencies were each ranked by market cap in the top hundred. Thanks to an inbuilt mechanism of Bancor Protocol that “effectively stop[ped] the thief from running away with the stolen tokens” The Bancor team was able to freeze BNT.

As far as the occurrence is concerned, Bancor revealed that a wallet which was being used to “upgrade some smart contracts was compromised.” The very same digital wallet was then used to withdraw all the above-mentioned tokens of Pundi X, Bancor Protocol and Ethereum.

From the time of hack (i.e., 5:00 (IST) on Sunday), the dollar value of Bancor Network Token went down by as much as 36 % from $3.14 to $2.00 within a fourteen hour period. So for BNT has recovered by more than 20%. Apart from the Bancor’s security practices, they BNT sell-off is probably because of the elements of centralization investors have viewed placed by a network that is popularly considered decentralized.

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Madhuri Arora
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