Litecoin founder Charlie Lee on Bancor security breach: An exchange is not decentralized if it can lose customer funds

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July 10, 2018 by
Litecoin founder Charlie Lee on Bancor security breach: An exchange is not decentralized if it can lose customer funds

Decentralized cryptocurrency system Bancor experienced a “security breach” on July 9. The posted an official statement related to the safety and security violation which occurred at around 00:00 UTC.

Bancor discussed in the declaration that they are “committing every source to resolving it”. The details of the breach are still being checked out. Nevertheless, the things which are validated are, a budget made use of to update some smart contracts was endangered. The budget was after that used to withdraw Ethereum token (ETH) worth $12.5 million from BNT clever contract. The hack came as a shock not only to the customers however additionally to everyone else in the crypto-verse. Actually, Litecoin owner, Charlie Lee also took a dig at the ‘decentralized’ wallet.

” A Bancor pocketbook obtained hacked which pocketbook has the ability to swipe coins from their very own clever contracts,” Lee tweeted. “An exchange is not decentralized if it can shed customer funds or if it can freeze customer funds. Bancor can do BOTH. It’s a false sense of decentralization.”
A twitter user discussed his blog post describing the difference in between the exchange and the bnt token. “Bancor does not hold your symbols so could consequently not freeze your funds. Bnt can be iced up as could many leading erc20 tokens. It’s also thought about a safety finest technique by some.” The user stated, “The coins that were stolen really did not come from individuals. Bancor got its own funds taken. Same as if you ‘d have your own swiped. Central to you. Additionally, the irony of this is that centralisation is just what in fact conserved $12 mil bnt from being taken. It’s the eth that can not be returned. [sic]

See also: Bancor Issues Security Breach Warning: Remains Down for Maintenance

An additional user discussed how his declaration is wrong saying, “All ERC token developers can freeze their wise agreements or freeze a details pocketbook if the sc designed this way. Bancor is the creators of BNT token so they have full authority. [sic] The stolen Ethereum token (ETH) is from Bancor’s own pocketbook, not users budget. “So both of your declarations are wrong,” the customer added.

However, Bancor prepares to be back on the internet within 24 Hr, CoinTelegraph reported. And also, Bancor’s official statement pointed out that after the theft was recognized, they iced up the stolen BNT. However, Ethereum token (ETH) or any other stolen token could not be frozen, so, they’re taking the help of other cryptocurrency exchanges to trace the stolen symbols as well as make it challenging for the cyberpunk to liquidate them. They have likewise assured claiming that no individual purses have actually been endangered in the strike.

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