Digital currencies worth $40m stolen from Coinrail exchange

June 11, 2018
Chris Wheal

Coinrail, the cryptocurrency exchange based in South Korea, said on Sunday afternoon that its digital currency platform had been hacked and around $40m in various tokens stolen.

 

Coinrail’s message to traders following suspected $40m token theft: Pic Coinrail website

The exchange closed down the trading platform and put up on its website a “Sytem Maintenance” notice, explaining to users that it had managed to save 70% their token reserves which were now safely stored in a cold wallet.

PundiX evidence

A blog post published on cryptocurrency sales network PundiX on Sunday suggested that the hackers transferred ether, NPXS, ATX and DENT coins worth around $40m at the time of the attack. Given today’s price declines, the tokens would now be worth around £30m, however.

More details of the suspected hacker emerged after data from Etherscan, the transaction data compiler, recorded an address flagged as “Fake_Phishing1432” tried to sell 26 million tokens on the IDEX exchange.

Statement

Coinrail’s statement on its web page said: “Two-thirds of the coins confirmed to have been leaked are covered by freezing / recalling through consultation with each coach and related exchanges.

“The remaining one-third of coins are being investigated with investigators, relevant exchanges and coin developers.”

It added that exact damage was still to be confirmed. The exchange remained closed on Monday.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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