KickICO loses $8 million tokens in major security breach but worry not
In yet another ICO hacking incident, KICKICO, a blockchain-based crowdfunding platform, lost KICKO tokens worth $7.7 million on Thursday.
KICKICO CEO Anti Danilevski revealed the security breach in a Medium post. He stated the issue was under control and all KickCoins will be returned.
He claimed the hackers gained access to the account of a KICK smart contract – tokens of the KICKICO platform – on July 26 at 9.04 UTC. The team realized about the attack when they received several complaints from the victims who found tokens worth $800,000 missing in their wallets, Danilevski.
The ICO conducted a probe and found out that a total of 70 million KICK were stolen, which is equivalent to $7.7 million at the current exchange rate.
In the announcement, he said they fully restored control over the smart contract. KICKICO will return funds to the wallets of victims and asked them to reach out at email@example.com. The company assures to return all the tokens to KickCoin holders.
KICKICO hacked: How it happened
The post explains that hackers got access to the private key of the owner of the KickCoin smart contract and hid their results by “employing methods used by the KickCoin smart contract in integration with the Bancor network.”
“Hackers destroyed tokens at approximately 40 addresses and created tokens at the other 40 addresses in the corresponding amount. In result, the total number of tokens in the network has not changed. But thanks to the rapid response of our community and our coordinated teamwork, 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.”
Bancor, fourth largest ICO, lost $13.5 million
Bancor, the fourth largest ICO, faced a similar attack when it lost $13.5 million of its own funds.
“A wallet used to upgrade some smart contracts was compromised. This compromised wallet was then used to withdraw ETH from the BNT smart contract in the amount of $12.5 million,” Bancor stated in an official statement.
Unlike KICKICO, in Bancor’s case, no wallets or funds of users were stolen, but many experts in the crypto space raised questions about Bancor network’s structure.
Image via Shutterstock
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