Hack Almost Bankrupts Cryptobank

Financial institutions attract cyber criminals like flies around dung. However, a recent hack nearly crippled cryto exchange platform Altsbit, when criminals stole nearly all of their funds.

The Italian exchange announced the hack on its Twitter channel, saying:

“Dear users, unfortunately we have to notify you with the fact that our exchange was hacked during the night and almost all funds from BTC, ETH, ARRR and VRSC were stolen. A small part of the funds are safe on cold wallets.”

They said that criminals had made off with 1,066 Komodo (KMD) tokens and 283,375 Verus (VRSC) ‘coins’ with a combined value of $27,000.

The funds kept in ‘cold storage’ are stored in devices that aren’t connected to the internet, which resulted in them being left after the attack.

Altsbit prides itself on being a user’s ‘reliable cryptocurrency partner’ but after this incident, users were quick to vent their frustration on the social media site Twitter.

One user tweeted:

“The only way they can keep the RE-LIABLE is to drop the “RE” and take responsibility for s*** security protocols. How is it that after 5 years after Mt. Gox there are STILL exchanges who don’t know that hot wallet is only for live-execution flow and cold storage is for the other 97.5%”

Another user tweeted:

“Oh dear. Probably time to update your bio.”

It is still uncertain as to how the hackers managed to infiltrate Altsbit system, and the organisation is currently investigating the cause.

However, users continued to vent their frustration at the relatively new crypto exchange, claiming that it was potentially an inside job, as the organisation didn’t want to trade anymore., labelling the crime an “exit scam.”

Later in the day Altsbit tweeted:

“We are now on analysis of the amount of loss and technical issues of the hack. We will come back soon with more details.”

As a parting shot, another disgruntled user, took a swipe at the business’ post, by tweeting:

“Dear users, unfortunately we have to notify you that we have decided to steal all your money and blame it on a hack. Please deposit more funds ASAP so that we can continue operations and you can keep on enjoying trading at Your Reliable Cryptocurrency Partner. Thanks!!”

If you’re considering using crypto currency exchanges, always make sure you conduct your research. Although no organisation is ever 100% bullet proof, ensuring you have good reviews, potentially recommendations from friends or family members will hold you in good stead.