Hacks are not a good sign for the crypto industry as they deteriorate the public image of the crypto markets. While the industry is trying to eliminate these hacks with additional security measures, a new hack comes forward. Recently Singapore based DragonEx was found hacked and the asset was assumingly moved to other exchanges forcing the management to seek help from other exchanges to trace back their asset.
DragonEX asks other exchanges to freeze suspected accounts
Earlier today the world of crypto was hit by the news of another hack. The telegram channel of the Singapore-based cryptocurrency exchange DragonEx was continuously abuzz with messages that crypto asset which the exchange had under its custody belonging to itself and users were all transferred and stolen by hackers. The event happened on Sunday, March 24th and DragonEx announced the same by posting a notice on the exchange’s telegram channel which read as
- It had “encountered attacks from hackers” on Sunday (March 24) as a result of which “users’ crypto assets and Platform crypto assets were transferred and stolen.”
- Some of the stolen funds “were retrieved.”
- The exchange would do its best to get back the rest of the stolen assets.
- Authorities in Singapore and several other jurisdictions (including Estonia, Thailand, and Hong Kong) had been notified of this “cybercrime”, and the exchange is assisting the police with their investigation.
- All services on the platform had been suspended and the “accurate assets loss recovery situation” (meaning that the exact amount of the loss) would be announced in one week.
- The exchange “will take the responsibility” for the users’ losses “no matter what.”
While the news of the hack was still pretty young, Joanne Long, a member of DragonEx’s customer support staff, also took the telegram channel to announce that the exchange had undertaken an investigation and found that most of their assets were transferred to a variety of wallets including the once which were on exchanges like Huobi, Binance, Gate.io, and Bittrex. Joanne further added that “the stolen assets transferred to Huobi and gate.io are blocked already!” and requested other exchanges also to cooperate. The message read as
“we earnestly request help from all our fellow exchanges and other industrial strength, please help us to investigate and traced the assets, freeze them and stop the assets flows.”
The same request was put forward by fellow exchanges as well.
Recently some other exchanges got invaded. Our security team monitored the hacker address at once and now we are trying to recover the stolen assets.
I am here to call on all exchanges to pay attention to security construction, which is our main responsibility to users.
— Michael Gan (@gan_chun) March 26, 2019
Hacks are not a healthy sign for the industry that is trying to grow out of nascency. It will require a collective effort of all the exchanges to tackle this menace of hacks. For now one can just hope DragonEx would acquire back all its lost assets and come back to normalcy with better security
Will DragonEx be able to recover its lost asset? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.