13.5 Million Dollars’ Worth of Digital Tokens Stolen in Banco Security Breach

Security breach

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Banco which is a digital currency conversion platform suffered a security breach which saw 13.5 million dollars inform of digital tokens stolen. The startup from Israel in its statement stated that one of its wallets had been compromised which led to the loss of one million dollars’ worth of Pundi X and 12.5 million dollars’ worth of Ethereum.

This hack may have affected the prices of both Ethereum and Pundi X. Actually today Ethereum dropped by 7.7 percent while Pundi X lost 15 percent. According to the official statement from Banco:

“On 9th July at approximately 00:00 UTC, Banco suffered a security breach. We have taken the incidence very seriously and we are committing many resources to resolve it. We are working to ensure that the network is back online and more to that track the criminals involved.”

Banco went on to state that they were still investigating the breach but we first wanted to inform every one of the details we have at the moment. They added that: “Our wallet which we used to upgrade our smart contracts was compromised which saw the withdrawal of Ethereum worthy 12.5 million dollars as well as NPXS worth 1 million dollars and finally BNT worthy 10 million dollars.”

“Immediately we noticed the hack we managed to freeze all the BNT which reduced the amount which had been compromised by about 10 million dollars. We were however not able to freeze the Ether as well as the Pundi X, however, we are working in collaboration with several crypto exchanges to try and trace the stolen funds so as to make sure that it’s difficult for the criminal to liquidate the funds. We will continue updating all the interested parties about this incidence on out Twitter and Telegram handles.” Concluded the post.

Banco added that they have several wallets and only one had been compromised. Banco has been enabling users to use smart contracts enabling them to hold digital currencies while giving them the power to convert them into other digital coins. Banco’s website is currently not operational with a message reading stating that: “Banco will be online soon, we are currently doing some maintenance work.”

The company started its operations last years after an ICO which raised about 183 million dollars.

Regular security breaches

The number of security breaches targeting digital currencies has been increasing day by day. Earlier this year Japanese based Coincheck was hacked losing NEM worthy 530 million dollars. These cases have been popular since 2014 when the then dominant crypto exchange Mt. Gox lost 480 million dollars’ worth of Bitcoins. That hack was a great test to Bitcoin which recovered well hitting an all-time high of 20,000 dollars before losing more than half of its value in 2018.

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