ICO platform loses more than 70 million KICK tokens because of a cyber attack
According to the recent statement published on the company's blog by its CEO Anti Danilevski, the blockchain-based ICO platform called KICKICO experienced a security breach which caused a loss of almost $8 million. In the report, the company informed customers that attacker, who is still unknown, somehow managed to gain access to the account of KICK smart contracts. The company admits that they had no clue about this security breach until several of KickCoin holders complained about missing tokens worth $800,000 from their wallets. It all happened overnight.
After further investigation, the total amount of stolen funds appeared to be 70,000,000 KICK. At the current exchange rate, this is equivalent to $7.7 million. The company reported that the attacker managed to gain this direct access by obtaining a private key form the owner of KickCoin smart contract, that allowed the hacker to steal money from people's wallets on the platform.
Hacker had only a few hours to use the stolen private key
After gaining the full access to KickICO smart contract, the anonymous attacker destroyed tokens from about 40 different addresses and made a transfer to 40 fake addresses which all were controlled by him. This activity helped hacker to stay unnoticed since the total number of tokens in the network remained the same. However, after a few hours, KickICO managed to fully regain access to the smart contract, and the compromised key was replaced. This helped the company to prevent further infection.
According to the same report, the issue is under control and the company is ready to return all the lost tokens to the victims. KICKICO is also asking all victims to contact the company via firstname.lastname@example.org email so they can refund all stolen tokens to their owners. So if you are one of those who found your KICK stolen from your wallet, contact the company.
Fortunately, the KICKICO has already recovered from the attack and is launching a grand competition with an impressive prize:
We are happy to announce a grand competition with a prize fund of 2 500 000 KICK!
The KICKICO contest will consist of 3 rounds and Big Final. The winner takes it all! Almost 😉 Because we will have 22 of them! Apart from the winners of each round, we will also pick the most active ones who will compete for the great prize at the final round.
The contest starts on Aug 8.
KickICO partner already had an incident with a massive breach
One of the project's partners, the decentralized cryptocurrency startup-Bancor, has already been in its partner's shoes. The company fell victim on July 2018, when hackers stole almost $24 million-worth cryptocurrencies. Hackers stole $12.5 million of Ether Tokens, $1 million of Pundi X, and $10 million of the Bancor Tokens.
At the time, the company also ensured that no user wallets were compromised and that stolen BTN was frozen. However, other cryptocurrencies were not frozen, so cybercriminals responsible for the attack were identified and tracked. While working on this issue, Bancor had to terminate the service for a while.