Recently, there have been more and more hacker attacks targeting cryptocurrency exchanges. This time, the Russian LiveCoin exchange fell victim to criminals. Hackers managed to swap cryptocurrency prices and thus took funds out of the stock exchange.
The hack took place on the night of December 23-24. The stock market on Christmas Eve published an entry on its website, which states that the attackers carried out a “carefully planned attack”.
In this hack, the company has lost control of all its servers, backend, nodes, and “new channels” – possibly social media accounts. The platform called on its customers to stop using its services.
Typically, an exchange hack is to steal cryptocurrencies from a hot wallet. This could have happened as well, but hackers have innovated. The attackers managed to change the rates of some cryptocurrencies. According to report ZDNet, those behind the attack, set the BTC exchange rate at $ 450,000, XRP at $ 17, and Ethereum at $ 15,000.
How did hackers cash the loot?
After the course shifted, hackers began to monetize the accounts that made a profit. The way the hackers completed the transaction, however, leaves a few questions. Since hackers have withdrawn funds at an inflated rate, did they manage to withdraw cash or convert the loot to other cryptocurrencies.
In case they were withdrawing cash, how did they manage to do so? Livecoin is not a large stock exchange. Before being hacked, this platform was listed as the 173th largest exchange in the world by volume. According to available data, the stock exchange processed an average of $ 50 million in transactions each day.
Back in the day, cryptocurrency hacks were easier to perform. Now attackers have to come up with newer and newer methods, as many companies have invested in additional cyber security to prevent attacks. The recent spikes in BTC have most certainly left hackers’ hands full. This is why we recommend that you exercise extreme caution when choosing a platform.
Other examples of hacks from recent months are, for example, $ 150 million shed from the Singapore KuCoin exchange in September. Last week, criminals also managed to steal $ 10 million from EXMO Exchange Limited.