Victor Ugochukwu · Dec 14, 2020 . 5min read
Eterbase Traces its Hacked $5.4 Million Funds Transferred to Binance, HitBTC and Huobi
Europe's premier digital asset exchange Eterbase recently encountered a hack of US $5.8 Billion where its Hot Wallets were affected.
By Komal Joshi · Sep 10, 2020 . 6min read
Eterbase, a European exchange, recently suffered a hack of US $5.4 million. It reported that it had tracked the movement of stolen funds. According to the investigation, they were transferred into rival exchanges, including Binance, HitBTC, and Huobi. It requested the officials to cooperate in freezing funds to thwart any criminals’ attempts to cash out their loot.
#Eterbase will continue with operations! Our investigation shows a big part of stollen funds ended up on @binance, @HuobiGlobal, and @hitbtc. Your assistance will be appreciated. Thank you! @cz_binance#compliant#EU#cryptocurrency#exchange#trading
Recently, Eterbase, which describes itself as “Europe’s premier digital asset exchange,” announced that it had suffered a security breach which saw malicious hackers access its network and steal funds worth the US $5.4 million.
Telegram’s message listed the six hot wallets hacked for their Ether, Tezos, Bitcoin, ALGO, Ripple, and TRON riches. Moreover, the majority of the cryptocurrency funds stolen from the hot wallets were in the form of Ether, making up almost $3.9 million of the nearly $5.4 million stolen.
Eterbase Goes into Maintenance Mode
Eterbase put its exchange into “maintenance mode” following the security breach and reported the law enforcement attack. The cryptocurrency exchange says that it is cooperating with investigators. It assures its clients that they are taking vital steps. It ensures that their deposit amounts will not suffer any damage due to a hacker attack. Eterbase elucidates that they have enough capital to meet all the obligations of the consumers. Moreover, it states that these attacks won’t affect the journey of Eterbase.
The liabilities of Hot Wallets
For the uninitiated, a hot wallet is a cryptocurrency wallet that connects to the internet. A user commits the responsibility of maintaining the private and public keys of their cryptocurrency hot wallet to an online platform. It is better than looking after it themselves. Therefore, it indicates that hot wallets are comparatively easy to set up and convenient to access.
However, that satisfaction of access also indicates an enhanced risk that online criminals will also be capable of hacking into the platform and stealing a wallet’s contents. A cold wallet is a wallet which is offline and utilized for storing cryptocurrencies. A cold wallet is often more secure than a conventional wallet. However, the majority of known cryptocurrency hacks have involved stealing funds from hot wallets.
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