Security challenges across the cryptocurrency markets have been a rising concern. From malicious attacks to unauthorized entry into systems, they are doing everything laying out the vulnerabilities of the system. As per the latest reports, a European cryptocurrency exchange got hacked this time. The small Slovakian-based exchange Eterbase was compromised by hackers exposing its security deficits albeit the hackers made off with not a big sum. The hacked total amounted to $2 million.
The wallets of Eterbase were raided for Bitcoin, Ethereum, XRP, Tezos, Algorand, and TRON. The exchange informed of the hacker attack on its official Telegram channel. As per the current prices, it adds up to about $1.8 million according to calculations done by Decrypt.
Eterbase also informed the users on its Twitter account.
Source: Official Twitter account of Eterbase
Cryptocurrency exchange Eterbase is a small exchange with an average daily trades of $ 3 million as per CoinGecko.Early today morning, the hackers found their way inside the exchange’s hot wallets. It intruded those wallets which are connected to wallet not choosing to enter cold wallets as they are not connected to the internet. Nenad Ristic, the social media handler for Eterbase assured that no personal information was stolen in the attack.
Different funds went to different places. For instance, the ETH funds were taken to the US dollar-pegged stablecoin, Tether; non-custodial lending protocol Compound, centralized exchange Binance, and Dex – Uniswap.
Eterbase came out on its Telegram channel and informed its users that it has already informed the law enforcement authorities about the same. They are cooperating closely for a smooth investigation. They have even assured their clients that the exchange is doing everything and taking all the necessary steps to see to it that their deposit amounts do not suffer any damage due to the attack. It also added that the investigation is at the ongoing stage and until something more substantial comes up, they will not be able to announce more details. It has requested its users to have patience until the issue is solved for good. The exchange has also suspended any withdrawals into euros until September 10th.
Crypto exchanges getting hacked seem to be becoming a regular phenomenon. The scare is always there because hackers very well know the vulnerabilities of the system. In 2014, Mt Gox found out about the hack which was worth $450 million. In 2019, $40 million was stolen by hackers from Binance. And very recently, March last year, South Korean exchange Bithumb also got hacked for $13 million. The hackers also are smart enough not to keep the hacked amount in one place. They move funds intermittently, presumably wanting to escape any track down by the law enforcement bodies which later gets cashed out.
The mounting concerns of hacks are rising with the rise of Decentralized exchange. These exchanges are non-custodial exchanges and assuming that the code is bug-free on these exchanges which could be a big assumption, we as investors need to be a lot more careful about the hack attempts.