3.5 billion yen ($32 million) of funds were stolen, with 2.5 billion yen of that belonging to customers. The hot wallet involved in the hack contained five cryptocurrencies, including bitcoin, Bitcoin Cash, and Ripple. In a more detailed document released by RemixPoint, the legal entity behind Bitpoint, the company said that hackers stole funds from both of its “hot” and “cold” wallets.
- 1,225 bitcoin,
- 1,985 bitcoin cash,
- 11,169 ether,
- 5,108 litecoin.
The exchange said:
“At approximately 1am June 27 (GMT+8), a hacker exploited a vulnerability in our Risk Control team’s 2nd review process to access the personal funds of about 90 Bitrue users. The attack was soon detected, and [trading] activity was temporarily suspended on Bitrue.”
How it was done:
“A hacker exploited a vulnerability in our Risk Control team’s 2nd review process to access the personal funds of about 90 Bitrue users. The hacker used what they learned from this breach to then access the Bitrue hot wallet and move 9.3 million Ripple (XRP) and 2.5 million Cardano (ADA) to different exchanges.”
“First of all, please let us assure you that this situation is under control, 100% of lost funds will be returned to users, and we are reviewing our security measures and policies to ensure this does not happen again.”
“On June 1 we were made aware of a theft of 201,000 XRP (transaction F6E9E1385E11649A6C2F88723A821AF209B54030886539DCEF9DDD00E6446948) and immediately started investigation. It turned out that the account robbed was managed through Gatehub.net, and that the offending account (r9do2Ar8k64NxgLD6oJoywaxQhUS57Ck8k) had stolen substantial amounts from several other XRP accounts, likely to be or have been managed through Gatehub.net.” Source
“At the moment we estimate that approximately 100 XRP Ledger wallets were compromised,” Pungercar added. “So far it looks like all the victims had their XRP Ledger wallets hosted on GateHub, but we cannot yet rule out that some wallets were not.” Source
The U.S. SEC as initiated court proceedings against a California resident, Daniel Pacheco, for allegedly operating a multimillion-dollar cryptocurrency pyramid scheme. Source
The SEC’s complaint, filed Wednesday, alleges that from January 2017 through March 2018, Pacheco conducted a fraudulent, unregistered offering of securities through two California-based companies he controls, IPro Solutions LLC and IPro Network LLC (collectively, “IPro”). IPro raised more than $26 million from investors by selling instructional packages that provided lessons on e-commerce. Investors also received “points” that could be converted into a digital asset known as PRO Currency. Investors who contributed additional funds could earn a mixture of cash commissions and additional convertible points by recruiting new investors into the IPro network. As alleged in the complaint, however, IPro was a fraudulent pyramid scheme. IPro’s inevitable collapse was hastened by Pacheco’s fraudulent use of investor funds, which included, among other things, the all-cash purchase of a $2.5 million home and a Rolls Royce. Pacheco’s misappropriation accelerated the rate at which IPro became unable to pay the commissions and bonuses due its investors.
Binance announced that a “large scale security breach” was discovered earlier on May 7, finding that malicious actors were able to access user API keys, two-factor authentication codes and “potentially other info,” the exchange’s CEO, Changpeng Zhao, said in a letter. As a result, they were able to withdraw roughly $41 million in bitcoin from the exchange, according to a transaction published in the security notice.
“The hackers had the patience to wait, and execute well-prepared actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed.”
Swindlers who used a bitcoin Ponzi scheme to rob around 56,000 people of over 21.2 billion won ($18.7 million) were arrested last Thursday.
The swindlers lured people with scant knowledge about the digital currency, mostly elderly people, housewives and retirees, with recruitment bonuses and free cryptocurrency.
(source: Korea JoongAng Daily)
FINRA, a self-regulatory body that oversees around 630,000 brokers alongside the companies where they are employed, had most recently banned 11 brokers from working in the industry of securities, while 16 people were suspended from the sector. One of the latest bans that FINRA imposed is revolving around a 1.5 million dollars-worth scam.