$11 Million Stolen as Trade.io Cold Storage Was Hacked

A few hours ago, Trade.io, a distributed wealth P2P shared liquidity pool exchange, revealed that the exchange have suffered from a hack. This incident has resulted in the loss of around 50 Million TIO tokens that were stored on Trade.io’s cold storage wallet. At the time of the attack, the stolen coins were worth $11 Million. Following the incident, Trade.io has shut down the deposit and withdrawal of TIO from their platform and also from Kucoin.

Not only were the funds stolen but after a further inquiry in the matter, Trade.io’s team noticed some irregularities in TIO pairs on Bancor and Kucoin. To avoid any further incident, both of these platforms have disabled the trade of TIO. Furthermore, TIO will not be listed on Bancor from now on, and TIO trading is also disabled on Trade.io exchange until further notice.

The 50 Million TIO, that were maliciously withdrawn from the cold storage, were meant for the Liquidity Pool, and an estimated total 1.5M of the total amount was already transferred to Bancor and Kucoin. The investigation is ongoing, and both exchanges are assisting Trade.io to gather information.

Trade.io has clarified that the hack occurred, despite their use of industry level of cold storage, which is then stored in safety deposit boxes in banks, along with all the corresponding materials. Trade.io also confirmed from the banks that the safe deposit boxes were not compromised in any way.

A Hard fork to cure?

To resolve this matter and protect their investors, Trade.io is considering the option of conducting a fork. This will make all the stolen tokens will become worthless.

Trade.io has said that they will announce further action in the next 24 hours and that the participation in the Liquidity Pool will remain uninterrupted. Investors will be able to enter and leave the Liquidity Pool as per usual.

The current attack on Trade.io is a depiction of how exchanges have become the focal point of the crypto industry. The competition is tough, and Trade.io has stated that “they will take strict action against the attackers and do their best to trace the stolen amount.”

At the time of writing, the price of TIO had declined to $0.16. The following TIO chart can give clues about the time of the attack:

trade_io_coinmarketcap-minTIO last 7 days. Marked is the possible decline following the attack. Source: Coinmarketcap

Publication date: 
10/21/2018 - 18:02
Author: 
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