Bancor Decentralized Exchange Hack - Revision history

Azoundria at 18:52, 1 May 2023

2023-05-01T18:52:32Z

← Older revision		Revision as of 12:52, 1 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bancordecentralizedexchangehack.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/bancordecentralizedexchangehack.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Bancor.jpg\|thumb\|Bancor]]This was apparently called a decentralized exchange; however it would appear that the funds were instead protected by smart contracts. One of the issues with Ethereum is that its complex scripting language often leaves holes and exploits, and in this case it would appear that the wallet used to update the smart contracts was itself breached. Ethereum does not inherently support a multi-signature model, making it very challenging for organizations such as cryptocurrency exchanges to properly secure their funds against theft and internal fraud.		[[File:Bancor.jpg\|thumb\|Bancor]]This was apparently called a decentralized exchange; however it would appear that the funds were instead protected by smart contracts. One of the issues with Ethereum is that its complex scripting language often leaves holes and exploits, and in this case it would appear that the wallet used to update the smart contracts was itself breached. Ethereum does not inherently support a multi-signature model, making it very challenging for organizations such as cryptocurrency exchanges to properly secure their funds against theft and internal fraud.

	This exchange or platform is based in Switzerland, or the incident targeted people primarily in Switzerland.		This exchange or platform is based in Switzerland, or the incident targeted people primarily in Switzerland.<ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-678" />
	<ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-678" />

	== About Bancor ==		== About Bancor ==
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	!Description		!Description
	\|-		\|-
	\|July 1st, 2018 12:01:04 AM		\|July 1st, 2018 12:01:04 AM MDT
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			Coming soon.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	~~Coming soon.~~

	== References ==		== References ==
	<references><ref name="bitcoinmagazine-6">[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29, 2020)</ref>		<references><ref name="bitcoinmagazine-6">[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 30, 2020)</ref>

	<ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>		<ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>

	<ref name="ciphertrace-90">[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14, 2020)</ref>		<ref name="ciphertrace-90">[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 15, 2020)</ref>

	<ref name="cointelegraph-197">[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1, 2020)</ref>		<ref name="cointelegraph-197">[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 2, 2020)</ref>

	<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref>		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref>

	<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref></references>		<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 18, 2021)</ref></references>

Azoundria at 05:54, 17 February 2023

2023-02-17T05:54:50Z

← Older revision		Revision as of 23:54, 16 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bancordecentralizedexchangehack.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/bancordecentralizedexchangehack.php}}
			{{Unattributed Citations}}

	[[File:Bancor.jpg\|thumb\|Bancor]]This was apparently called a decentralized exchange; however it would appear that the funds were instead protected by smart contracts. One of the issues with Ethereum is that its complex scripting language often leaves holes and exploits, and in this case it would appear that the wallet used to update the smart contracts was itself breached. Ethereum does not inherently support a multi-signature model, making it very challenging for organizations such as cryptocurrency exchanges to properly secure their funds against theft and internal fraud.		[[File:Bancor.jpg\|thumb\|Bancor]]This was apparently called a decentralized exchange; however it would appear that the funds were instead protected by smart contracts. One of the issues with Ethereum is that its complex scripting language often leaves holes and exploits, and in this case it would appear that the wallet used to update the smart contracts was itself breached. Ethereum does not inherently support a multi-signature model, making it very challenging for organizations such as cryptocurrency exchanges to properly secure their funds against theft and internal fraud.

	This exchange or platform is based in Switzerland, or the incident targeted people primarily in Switzerland.		This exchange or platform is based in Switzerland, or the incident targeted people primarily in Switzerland.
			<ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-678" />

	== About Bancor ==		== About Bancor ==
Line 23:		Line 25:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|July 1st, 2018 12:01:04 AM		\|July 1st, 2018 12:01:04 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $23,000,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
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	== References ==		== References ==
	[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29)		<references><ref name="bitcoinmagazine-6">[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29, 2020)</ref>

	[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)		<ref name="kylegibson-86">[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 25, 2020)</ref>

	[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14)		<ref name="ciphertrace-90">[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14, 2020)</ref>

	[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1)		<ref name="cointelegraph-197">[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1, 2020)</ref>

	[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)		<ref name="bitcoinexchangeguide-218">[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 5, 2020)</ref>

	[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)		<ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bancordecentralizedexchangehack.php}} BancorThis was apparently called a decentralized exchange; however it would appear that the funds were instead protected by smart contracts. One of the issues with Ethereum is that its complex scripting language often leaves holes and exploits, and in this case it would appear that the wallet used to update the smart contracts was its..."

2023-01-24T21:28:02Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bancordecentralizedexchangehack.php}} thumb|BancorThis was apparently called a decentralized exchange; however it would appear that the funds were instead protected by smart contracts. One of the issues with Ethereum is that its complex scripting language often leaves holes and exploits, and in this case it would appear that the wallet used to update the smart contracts was its..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/bancordecentralizedexchangehack.php}}

[[File:Bancor.jpg|thumb|Bancor]]This was apparently called a decentralized exchange; however it would appear that the funds were instead protected by smart contracts. One of the issues with Ethereum is that its complex scripting language often leaves holes and exploits, and in this case it would appear that the wallet used to update the smart contracts was itself breached. Ethereum does not inherently support a multi-signature model, making it very challenging for organizations such as cryptocurrency exchanges to properly secure their funds against theft and internal fraud.

This exchange or platform is based in Switzerland, or the incident targeted people primarily in Switzerland.

== About Bancor ==
“Bancor, a decentralized, self-proclaimed noncustodial exchange created in opposition to centralized ones (those which Vitalik Buterin had recently addressed his angry "burn in hell" statement) was attacked by hackers on July 9, 2018. It is noteworthy that this happened a day after the exchange expressed full agreement with Buterin in an official Twitter post about centralized decisions and stated that decentralized exchanges are the future.” “hackers stole $23.5 million in cryptocurrency from the 'decentralized' crypto exchange Bancor. The loss included $12.5 million in Ethereum along with BNT and NPXS tokens totaling $11 million. This massive security breach forced the firm to shut down operations. Bancor had been one of the more high-profile Initial Coin Offerings (ICOs) of 2017, raking in $153 million during its token sale event. According to Bancor, a wallet used to update some smart contracts was breached and used to withdraw the cryptocurrency.”

This exchange or platform is based in Switzerland, or the incident targeted people primarily in Switzerland.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Bancor Decentralized Exchange Hack
!Date
!Event
!Description
|-
|July 1st, 2018 12:01:04 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Coming soon.

== References ==
[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29)

[https://medium.com/@kylegibson/100-crypto-thefts-a-timeline-of-hacks-glitches-exit-scams-and-other-lost-cryptocurrency-873c87fd5522 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents] (Jan 24)

[https://ciphertrace.com/q3-2018-cryptocurrency-anti-money-laundering-report/ Q3 2018 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 14)

[https://cointelegraph.com/news/crypto-exchange-hacks-in-review-proactive-steps-and-expert-advice Crypto Exchange Hacks in Review: Proactive Steps and Expert Advice] (Mar 1)

[https://bitcoinexchangeguide.com/bitcoin/scams-hacks/ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com] (Mar 4)

[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)