ETERBASE

DESCRIPTION OF EVENTS

"Launched in 2019 and based in Bratislava, Slovakia, Eterbase is a centralized exchange that focuses on crypto to SEPA (Single Euro Payments Area) integration. It provides users with the ability to make and receive SEPA payments in their IBAN accounts." "ETERBASE is the first regulation-compliant European cryptocurrency exchange, offering fast, secure trading on a clean, powerful, user interface.". ETERBASE is "a Bratislava-based cryptocurrency exchange".

"On September 8, Eterbase was hacked for $5.4 million." "According to security analysts and researchers, the cybercriminals hacked into the network system of Eterbase Exchange and plundered the hot wallets of the customers." "Cyber-criminals broke into six hot wallets containing bitcoin, Ethereum, Algo, Ripple, Tezos, and Tron, draining everything. Following the exploit, Eterbase suspended all deposits and withdrawals, including any trading, until Sept.10." "The majority of the cryptocurrency funds stolen from the hot wallets were in the form of Ether, making up almost $3.9 million of the almost $5.4 million stolen."

"In a series of messages posted on its Telegram channel, the company said it detected the attack but could not stop it from taking place." "And now the exchange wants help stopping the stolen money from getting away." “Eterbase will continue with operations! Our investigation shows a big part of stolen funds ended up on @binance, @HuobiGlobal, and @hitbtc,” the Eterbase team said in a tweet. "Other exchanges have reacted to the news by offering their assistance. Binance CEO Changpeng Zhao responded to Eterbase’s tweet offering his exchange’s help."

"Eterbase put its exchange into “maintenance mode” following the security breach, and reported the attack to law enforcement. The cryptocurrency exchange says that it is co-operating with investigators, and “wants to assure our clients that we are taking all necessary steps to ensure that the amount of their deposit does not suffer any damage as a result of a hacker attack.”"

"Currently, all transactions on ETERBASE have been suspended until September 10, but the company said it planned to resume operations and reassured users that it had enough reserve funds to continue operating." “We want to inform our users that we have enough capital to meet all our obligations, and at the same time, we want to reassure everyone that this event won’t stop our journey,” the exchange tweeted. “After the security audit of renowned global companies, our operations will continue. We will announce the date of the re-opening of the ETERBASE Exchange platform as soon as possible,” the company says.

Finally, on January 15th, "Thank you again for your support and patience in the previous months! We are proud to announce that http://Eterbase.exchange is LIVE again! Good luck and Happy trading!"

"[D]ue to the fact that Eterbase has lost several important partners and financial providers, Eterbase exchange platform will be temporarily paused from Thursday 22th April 2021 17:00 CET until further notice."

"@ETERBASE official investigation is progressing slowly, but surely. This week the first steps will be taken by the National Crime Agency. We hope that the case will be officially forwarded to @INTERPOL_Cyber. We tracked down 10M+ worth of hacked assets to @Binance and @Huobi." "We are currently exploring options to pivot our business model to compensate our clients and holders of XBASE and EBASE. We are also hoping that @Europol will help with returning our funds from @binance and @HuobiGlobal."

A large amount of funds were taken from multiple hot wallets on the Eterbase exchange platform.

The exchange decided to shut down for 4 months, and when they relaunched, were surprised to find that there was very little interest in using the platform to trade.

Eventually, the exchange closed down for good. It was not clear what happened to affected users in the end.

HOW COULD THIS HAVE BEEN PREVENTED?

Customer funds on a cryptocurrency exchange should be stored in offline multi-signature wallets.

If there is a breach, relaunching and restoring customer funds in a timely manner is critical to the success of the platform.

Check Our Framework For Safe Secure Exchange Platforms

Crypto Hacks 2020: A Comprehensive List - ImmuneBytes (May 18)
ETERBASE | Europe's Premier Digital Asset Exchange (May 24)
@AuxtRobert Twitter (May 24)
@AuxtRobert Twitter (May 24)
Cryptocurrency exchange Eterbase hacked, $5.4 million stolen (May 24)
Slovak cryptocurrency exchange ETERBASE discloses $5.4 million hack | ZDNet (May 24)
@ETERBASE Twitter (May 24)
@ETERBASE Twitter (May 24)
European crypto exchange ETERBASE hacked, lost more than $5 million from its ‘hot’ wallets (May 24)
@ETERBASE Twitter (May 24)
2020-09-09: ETERBASE - HOT WALLETS COMPROMISED – OFFICIAL ANNOUNCEMENT – ETERBASE Support Portal (May 24)
ETERBASE Crypto-Exchange Hit in $5m Heist - Infosecurity Magazine (May 24)
Eterbase Wants to Stop Hacked Bitcoin From Getting Away - Decrypt (May 24)
Eterbase Crypto Exchange Suffered $5.4 Million Hack (May 24)
Eterbase Exchange Hacked: Hackers Stole $5.4 Mn - Kratikal Blogs (May 24)
Hackers Steal $5.4 Million From Crypto Exchange Eterbase | SecurityWeek.Com (May 24)
CipherTrace Cryptocurrency Crime and Anti-Money Laundering Report 2020 (Jun 20)
SlowMist Hacked - SlowMist Zone (Jun 26)

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