The currency lost 300 million, but the hacker is not the biggest winner.

Starting from the small holiday on May 1, Bitcoin has been rising for a week, with a maximum of $6,000. Just as the entire currency circle was immersed in the joy of rising, the sudden money hacking incident cut off the curve of bitcoin rising.

At 17:00 on May 7th, the US East Announced a notice of hacking "7000 Bitcoin" by hackers, about 300 million yuan.

Although Qian An said that the "SAFU Fund" will be used to fully bear the full loss of this attack, no user has any losses, but the hackers who broke into it have brought the instantaneous fall of the currency price and the panic paradox.

This is not the first time that the money security has been stolen. What is even more frightening is that the founder of the Dgroup, Zhao Dong, said that "all security solutions can't prevent themselves from being compromised." The $1 million price can break through all the websites.

Our trust in the exchange's "big but not down" will be shattered by hackers who are pervasive.

文/31QU 中本愚小萍

Restore the stolen process

At 7 o'clock this morning, the currency security issued an announcement, which announced some information about the attack.

The announcement said that at 1:15 am, the Onan Exchange discovered a large-scale security breach. In this attack, the hacker stole 7,000 bitcoins from the coin security wallet at a height of 575,012, worth about 300 million yuan.

A thunder and thunder burst.

According to the announcement message, hackers mainly use composite attack technology, including phishing, viruses and other means of attack, to obtain a large number of currency registration user API keys (authentication, control access), Google verification 2FA code and other related information, thereby Carry out the withdrawal operation.

Now, these 7,000 bitcoins have been transferred to 40 different wallets, and these 40 addresses have been monitored, and there is no transfer action.

Since then, CEO Zhao Changpeng said in Twitter AMA that Qian’an had discovered “large-scale security breaches” as early as May 7, but this vulnerability was also obtained by hackers. “But hackers have been very patient. It is not until the system has a large transaction that the money is stolen."

Affected by this incident, BNB fell 10% in one hour. Prices have now recovered, around $20.8.

At the same time, Bitcoin also suffered a short-term decline, from the lowest of 5980 US dollars to 5800 US dollars; Ethereum from the lowest drop of 174 US dollars to 166 US dollars; BCH fell from the lowest of 293 US dollars to 277 US dollars.

According to Qian’an, the attack only affected about 2% of the total bitcoin holdings of the exchange. In this way, the coin exchange has a total of 350,000 bitcoins, which is more than 120 billion yuan.

The currency security hacking incident has caused the entire currency to be stunned. Although Qian An and Zhao Changpeng kept stating, the attack will not cause user losses, and has begun to investigate. But the security problems caused by the theft of the exchange are once again in front of people.

Expensive lesson

In fact, this is not the first time that the currency has been hacked.

The first two times, hackers use the "technology" + "transaction" means, in the face of the money in the currency to steal the user's exchange account permissions, the user account in the BTC and other mainstream currencies, buy a certain altcoin, and then sell high Darkly, this altcoin is short on the field.

Although the actual operation is different, the main culprit of these three attacks is the API vulnerability.

The incident of theft was also a hacker lurking for a long time.

"At the right time, these hackers carefully planned the hacking incident through seemingly multiple accounts." The official said: "We must conduct a thorough security review, inventory the entire system and all."

"It is expected that the inventory will last for one week. During this period, all deposits and withdrawals will be suspended and the transaction will not be affected. During this period, the hacker may still have some user accounts to influence the currency price."

For the loss of users, the official said that the SAFU Fund will use the full compensation for user losses.

Zhao Changpeng also explained the attack on Twitter and said: "There is no need for FUD (fear of fear), and the funds are SAFU."

The SAFU fund was in July 2018. After the second hacking attack on the currency security, the company took out a 10% currency transaction fee and established a protection fund for investors.

At 11:00 this morning, through Periscope, an online live Q&A was held to address the loss of stolen funds through the transaction rollback. Zhao Changpeng said that he would consider this plan. He said: "The rollback has a negative impact on the credibility of the BTC network. It is recommended that users change the API key, 2FA code, and take a series of security measures."

Subsequently, Zhao Changpeng said on Twitter that after discussion, he decided not to use the rollback method to recover the stolen amount. The main considerations are: 1. It may affect the credibility of Bitcoin; 2. It may lead to the split of the Bitcoin network and the community; 3. This is an expensive lesson for the currency security.

Although the price of the currency fell, the positive response and response of the Currency Exchange actively influenced the direction of public opinion.

Interestingly, Sun Yuchen, the founder of the wave field, first released the Twitter support currency. He said that he would deposit 7,000 BTC equivalent US dollars ($40 million) into the currency in his own name, and use it to increase the currency of the currency, BNB, Bitcoin. BTC, wave field TRX and currency BTT.

The wave field rose more than 7% in one hour, and the highest rose to 0.02539USDT. Therefore, the outside world joked that the wave field became the biggest beneficiary of this hacking incident.

"Thank you very much, but no need, we are not bankrupt." Zhao Changpeng replied.

For the currency security, solving the security problem is fundamental. In the case that the security breach is not resolved, the money is added to the hacker to reserve the reward again.

However, there are doubts that the loss of the currency will eventually be paid by the retail investors.

Weibo user Gilles' bitcoin believes that "the 7,000 btc that the coin security was stolen, under the key node of the BTC 6000, the coin security will certainly not be bought back at the current price. On the contrary, the coin security is in the possession of its stolen. In the case of information, it will definitely go to a large number of short markets. Last night, the impact of the fall of 6000, the fall after the announcement this morning, I believe that the currency has already held a large number of empty orders, the currency can get low-cost BTC through the market decline, and You can get the BTC by shorting the BTC through the futures market, and the final one will be the public."

For a time, various conspiracy theories were rampant.

Cryptographic currency analyst Alex Krüger launched a vote on Twitter: The currency hacking was an incident in which JPMorgan Chase and BAKKT wanted to plan. According to the voting results, 48% of netizens said that this is nonsense, and 20% of netizens still agree.

Some netizens believe that this theft has played a very good role in promoting the decentralized exchanges and SAFU funds of the company.

Raising concerns about cryptocurrency security issues

Apart from these conspiracy theories, it seems that public opinion seems to be "satisfied" with the response measures of the currency security.

Indeed, for the currency security, this incident is an expensive lesson, and for the entire cryptocurrency and blockchain industry, security issues are also the most important threat.

According to 31QU's previously published report "Adamant Capital Report: Bitcoin is in a low valuation area, whales are hoarding chips", the encryption market is still in a new round of bull market brewing, bitcoin is in a low valuation area, whales are Stacking chips, bitcoin prices will fluctuate widely in the range of 3,000 to 6,500 USD in the future. However, there may be a possibility of further price declines due to a series of potential reasons. One of the most influential reasons is that the exchange may be subject to Hacking or malfunctioning.

According to the report, in a survey on bitcoin security issues (participants are experts in the security field), one of the most worrying issues for these security experts is security, and it is expected to exceed the 2020 summer. 20% of exchanges will be hacked.

This coin security attack perfectly fulfilled the above predictions. The currency piracy incident caused a blitz of money in the cryptocurrency market today. Bitcoin also fell from a high of 6,000 points the previous day, while BNB fell by nearly 5%. In addition, the mainstream currency was short-lived. Both have fallen.

Security issues have become the sword of Damocles hanging in the world of cryptocurrencies.

According to the chain analysis, the hacking was not caused by the direct transfer of the hot wallet's private key, but was realized through the process of withdrawing money. The single coin has reached 7,000 bitcoins, but the coin control system has not issued an alarm.

Therefore, there may be problems with the currency security early warning system. It may be that the intranet has been infiltrated by long-term APT, which is the result of long-term planning by hackers.

In response to the theft of the currency, the founder of the Loopring Road Printing Agreement, Wang Dong, said in a circle of friends:

  1. There are also security vulnerabilities in successful centralized exchanges, not just the technical level, but also internal controls;
  2. The larger the amount of funds, the bigger the target, the higher the security cost – the hacker does not see the small exchange;
  3. The decentralized exchanges currently seen on the market have failed without exception, including the first two versions of the road printing and all versions of 0x.

On the other side of the ocean, former Goldman Sachs partner, Galaxy Digital founder Michael Novogratz expressed concern about the hacking incident. He pointed out that the currency security is the largest exchange in the world, and the 2% of the stolen amount will also have a great impact. This is an inevitable result and will certainly bring more monitoring and review by the regulatory authorities.

Conclusion

Cryptographic currencies have not been recognized by the mainstream market.

Today, the news of the currency hacking attack appeared on the front page of the Bloomberg terminal, while the other pages of the homepage are news about the movements of central banks. This confirms that the cryptocurrency and blockchain industries are receiving unprecedented attention.

▲ As one of the mainstream providers of the international financial information terminal market, Bloomberg Terminal has a place in Wall Street and global financial sector.

However, with the expansion of the cryptocurrency market, the technology of hackers is constantly evolving and the means of attack are becoming more and more complicated. The hacking attack of the currency has shown us that this seems to be an opportunistic move. Premeditated attack.

For the exchange, it is almost an inevitable path to continually upgrade and update the technology on the security attack and defense.