Coinrail Hacked, Possible Losses of $40 Million in Crypto Feared

Coinrail Hacked

South Korea-based crypto exchange Coinrail reported Sunday that its platform suffered an attack, with cryptocurrencies worth up to $40 million being stolen during the hack.

Posting on their website, Coinrail said they had suspended services to conduct system maintenance since the attack, which resulted in the theft of a range of ERC-20 based tokens from the platform.

Coinrail has only given the names of the hacked tokens, without detailing the amounts stolen, Such as Pundi X’s NPXS token, ATC from Aston and NPER’s project token, NPER.

A blog post from Pundi X hinted that the attacker may have stolen staggering amounts of cryptocurrency, alleging that the attacker or attackers may have made off with 927 ETH, 2.6 billion NPXS, 93 million ATX, 831 million DENT coins as well as six other altcoins.

Pundi X’s post suggested that after the attack, Coinrail alerted the project about an ethereum address believed to be associated with the hacker. That address has been flagged as “Fake_Phishing1431.”

Both Coinrail and Pundi X claimed that IDEX has already frozen the assets sent from Fake_Phishing1432 upon investigation, and as such the NPXS tokens have not been liquidated.

Additionally, transactions associated with the Fake_Phishing1431 account shows what appears to be the account receiving a range of crypto from a single address several hours before the hack was reported.

Data from etherscan.io seems to show that after the hack, while the NPXS tokens were sent to IDEA, other stolen tokens seem to have been sent for trading to EtherDelta. It is still unclear whether the assets were liquidated or not, as Coinrail has not responded to calls for an update and EtherDelta has yet to issue a statement.

Coinrail said on its website that their reserve is safe as they have moved 70 percent of its reserve to a cold wallet that is inaccessible from the internet.

For the rest of the tokens that were compromised, the exchange said that two-thirds of these are currently frozen, including NPXS, ATX, and NPER tokens. In the meantime, it is still investigating the remaining third of the stolen amount with “police, investigators, relevant exchanges and project developers.”

Data from CoinMarketCap showed that Coinrail was ranked around 90th largest around the time of the attack, with about $2 million in 24-hour trading volume on the site. Its data is currently not available on CoinMarketCap due to the system suspension by Coinrail.

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