KickICO experiences a hack and loses $7.7 Million
KICKICO, an initial coin offering (ICO) project launched on top of the Ethereum blockchain protocol, was hacked on July 27 and lost more than 70 million KICK worth $7.7 million.
The security breach of KICKICO was unique and dissimilar to most cryptocurrency, blockchain network, and token hacking attempts. In case of KICKICO hack, the hackers were able to gain direct access to the smart contract of the KICKICO blockchain network. They did this by obtaining the private key of the KickCoin smart contract.
Attackers destroyed 40 addresses and created 40 new accounts with identical balances during the period in which the hackers had complete access to the KickCoin smart contract. Attackers essentially stole user funds from 40 different accounts. The fixed supply of KICKICO remained the same subsequent to the breach considering that the stolen funds from the KICKICO blockchain network were not permanently destroyed but replicated.
In order to protect the network and remaining user funds, the KICKICO team was able to regain access to its smart contract and replaced the compromised private key with the private key in its cold wallet after a few hrs of the incident.
As per the official announcement of the KICKICO team, the company will fully reimburse every user and owners of the 40 accounts with KickCoin, recreating 40 wallets that were compromised.
Anti Danilevski, the CEO at KICKICO, said in a notice:
“KICKICO has experienced a security breach, which resulted in the attackers gaining access to the account of the KICK smart contract — tokens of the KICKICO platform. The team learned about this incident after the complaints of several victims, who did not find tokens worth 800 thousand dollars in their wallets.”
The KICKICO team further added:
“But thanks to the rapid response of our community and our coordinated team work, we were able to regain control over the tokens and prevent further possible losses by replacing the compromised private key with the private key of the cold storage.”
Developers at KICKICO explained that an increased number of hackers targeted the KICKICO network after KickCoin experienced a rapid growth in the past two weeks and the price of KickCoin tripled from $0.4 (ICO price) to $0.12.
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