Bancor Decentralized Exchange Investigating Security Breach

bancor security breach

Switzerland-based decentralized cryptocurrency exchange Bancor, best known for raising $153 million in three-hours through its highly successful initial coin offering (ICO), has gone down for maintenance while they investigate what they are calling a “security breach.”

Bancor made investors aware of the breach through a Twitter post from the company’s official account explaining that operations were halted until an investigation concluded. The tweet reads:

“This morning (CEST) Bancor experienced a security breach. No user wallets were compromised. To complete the investigation, we have moved to maintenance and will be releasing a more detailed report shortly. We look forward to being back online as soon as possible.”

Because Bancor is a decentralized exchange and does not hold any cryptocurrency in hot wallets, user funds are perfectly safe. Still, users of Bancor are still expressing their concerns via Twitter.

According to Cointelegraph, sources familiar with the matter said that the stolen tokens include 25,000 Ethereum, 300,000 Pundi X, and 2.5 million of Bancor’s native token, BNT. In total, the combined value is well over $12 million in stolen cryptocurrency. 

Bancor CEO Konstantin Gladych claims part of the stolen tokens “were exchanged via Changelly” while others – their own native BNT token – were frozen by the Bancor Foundation.

Hacks and crypto theft continue to run rampant throughout the cryptocurrency industry. While decentralized exchanges such as Bancor are often considered the safest option out of all exchanges due to the fact decentralized exchanges don’t hold a user’s assets, the dilemma proves that not even decentralized exchanges are immune to growing crypto-related cyber-crimes.

Bancor’s native BNT token has fallen over 15 percent as a result of the news according to CoinMarketCap data. Bancor, was among the most high-profile ICOs in 2017, but has thus far not provided the return investors were hoping for.