CoinRail Exchange Hack - Revision history

Azoundria at 19:48, 10 May 2024

2024-05-10T19:48:52Z

← Older revision		Revision as of 13:48, 10 May 2024
Line 4:		Line 4:
	This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done through a risky smart contract. CoinRail displays presently as a “403 error” when viewed from most countries, however viewing from some countries such as Singapore appears to display the website.		This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done through a risky smart contract. CoinRail displays presently as a “403 error” when viewed from most countries, however viewing from some countries such as Singapore appears to display the website.

	This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-107" /><ref name="coindesk-140" /><ref name="techcrunch-141" /><ref name="thenextweb-142" /><ref name="newsdotbitcoin-143" /><ref name="newsdotbitcoin-160" /><ref name="cryptopotato-161" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />		This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-107" /><ref name="coindesk-140" /><ref name="techcrunch-141" /><ref name="thenextweb-142" /><ref name="newsdotbitcoin-143" /><ref name="newsdotbitcoin-160" /><ref name="cryptopotato-161" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" /><ref name="carnegieendowment-9983" />

	== About CoinRail ==		== About CoinRail ==
Line 124:		Line 124:
	<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref>		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref>

	<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>		<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref>

			<ref name="carnegieendowment-9983">[https://carnegieendowment.org/specialprojects/protectingfinancialstability/timeline Timeline of Cyber Incidents Involving Financial Institutions - Carnegie Endowment for International Peace] (Dec 12, 2022)</ref></references>

Azoundria at 18:51, 1 May 2023

2023-05-01T18:51:49Z

← Older revision		Revision as of 12:51, 1 May 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/coinrailexchangehack.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/coinrailexchangehack.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done through a risky smart contract. CoinRail displays presently as a “403 error” when viewed from most countries, however viewing from some countries such as Singapore appears to display the website.		This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done through a risky smart contract. CoinRail displays presently as a “403 error” when viewed from most countries, however viewing from some countries such as Singapore appears to display the website.

	This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.		This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-107" /><ref name="coindesk-140" /><ref name="techcrunch-141" /><ref name="thenextweb-142" /><ref name="newsdotbitcoin-143" /><ref name="newsdotbitcoin-160" /><ref name="cryptopotato-161" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />
	<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-107" /><ref name="coindesk-140" /><ref name="techcrunch-141" /><ref name="thenextweb-142" /><ref name="newsdotbitcoin-143" /><ref name="newsdotbitcoin-160" /><ref name="cryptopotato-161" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />

	== About CoinRail ==		== About CoinRail ==
Line 45:		Line 44:
	!Description		!Description
	\|-		\|-
	\|June 1st, 2018 12:01:02 AM		\|June 1st, 2018 12:01:02 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.
Line 53:		Line 52:
	\|		\|
	\|}		\|}

			== 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 ==
Line 72:		Line 74:
	== 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="thecoinrepublic-5">[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30, 2020)</ref>		<references><ref name="thecoinrepublic-5">[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 31, 2020)</ref>

	<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>		<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-107">[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22, 2020)</ref>		<ref name="cointelegraph-107">[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 23, 2020)</ref>

	<ref name="coindesk-140">[https://www.coindesk.com/coinrail-exchange-hacked-loses-possibly-40-million-in-cryptos Coinrail Exchange Hacked, Loses Possibly $40 Million in Cryptos - CoinDesk] (Feb 23, 2020)</ref>		<ref name="coindesk-140">[https://www.coindesk.com/coinrail-exchange-hacked-loses-possibly-40-million-in-cryptos Coinrail Exchange Hacked, Loses Possibly $40 Million in Cryptos - CoinDesk] (Feb 24, 2020)</ref>

	<ref name="techcrunch-141">[https://techcrunch.com/2018/06/10/korean-crypto-exchange-coinrail-loses-over-40m-in-tokens-following-a-hack/ Korean crypto exchange Coinrail loses over $40M in tokens following a hack – TechCrunch] (Feb 23, 2020)</ref>		<ref name="techcrunch-141">[https://techcrunch.com/2018/06/10/korean-crypto-exchange-coinrail-loses-over-40m-in-tokens-following-a-hack/ Korean crypto exchange Coinrail loses over $40M in tokens following a hack – TechCrunch] (Feb 24, 2020)</ref>

	<ref name="thenextweb-142">[https://thenextweb.com/hardfork/2018/06/11/coinrail-cryptocurrency-exchange-hack/ South Korean cryptocurrency exchange hacked for nearly $40M] (Feb 23, 2020)</ref>		<ref name="thenextweb-142">[https://thenextweb.com/hardfork/2018/06/11/coinrail-cryptocurrency-exchange-hack/ South Korean cryptocurrency exchange hacked for nearly $40M] (Feb 24, 2020)</ref>

	<ref name="newsdotbitcoin-143">[https://news.bitcoin.com/crypto-exchange-coinrail-recover-cryptocurrencies/ Crypto Exchange Coinrail Reopens with Offers to Recover 11 Cryptocurrencies \| Exchanges Bitcoin News] (Feb 23, 2020)</ref>		<ref name="newsdotbitcoin-143">[https://news.bitcoin.com/crypto-exchange-coinrail-recover-cryptocurrencies/ Crypto Exchange Coinrail Reopens with Offers to Recover 11 Cryptocurrencies \| Exchanges Bitcoin News] (Feb 24, 2020)</ref>

	<ref name="newsdotbitcoin-160">[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 25, 2020)</ref>		<ref name="newsdotbitcoin-160">[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 26, 2020)</ref>

	<ref name="cryptopotato-161">[https://cryptopotato.com/lessons-learned-from-the-biggest-crypto-hacks-in-history/ Lessons Learned from the Biggest Crypto Hacks in History] (Feb 25, 2020)</ref>		<ref name="cryptopotato-161">[https://cryptopotato.com/lessons-learned-from-the-biggest-crypto-hacks-in-history/ Lessons Learned from the Biggest Crypto Hacks in History] (Feb 26, 2020)</ref>

	<ref name="blockexplorer-162">[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25, 2020)</ref>		<ref name="blockexplorer-162">[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 26, 2020)</ref>

	<ref name="fintechnews-164">[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 26, 2020)</ref>		<ref name="fintechnews-164">[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 27, 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-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref>		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref>

	<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>		<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>

Azoundria at 05:53, 17 February 2023

2023-02-17T05:53:37Z

← Older revision		Revision as of 23:53, 16 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/coinrailexchangehack.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/coinrailexchangehack.php}}
			{{Unattributed Citations}}

	This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done through a risky smart contract. CoinRail displays presently as a “403 error” when viewed from most countries, however viewing from some countries such as Singapore appears to display the website.		This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done through a risky smart contract. CoinRail displays presently as a “403 error” when viewed from most countries, however viewing from some countries such as Singapore appears to display the website.

	This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.		This exchange or platform is based in South Korea, or the incident targeted people primarily in South Korea.
			<ref name="thecoinrepublic-5" /><ref name="bitcoinmagazine-6" /><ref name="kylegibson-86" /><ref name="ciphertrace-90" /><ref name="cointelegraph-107" /><ref name="coindesk-140" /><ref name="techcrunch-141" /><ref name="thenextweb-142" /><ref name="newsdotbitcoin-143" /><ref name="newsdotbitcoin-160" /><ref name="cryptopotato-161" /><ref name="blockexplorer-162" /><ref name="fintechnews-164" /><ref name="cointelegraph-197" /><ref name="bitcoinexchangeguide-218" /><ref name="slowmisthacked-1160" /><ref name="youniversitytv-7677" />

	== About CoinRail ==		== About CoinRail ==
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.
Line 45:		Line 46:
	\|-		\|-
	\|June 1st, 2018 12:01:02 AM		\|June 1st, 2018 12:01:02 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.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 58:		Line 55:

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $40,000,000 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?
Line 69:		Line 66:

	== 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?
Line 80:		Line 77:

	== References ==		== References ==
	[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30)		<references><ref name="thecoinrepublic-5">[https://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30, 2020)</ref>

	[https://bitcoinmagazine.com/articles/infographic-overview-compromised-bitcoin-exchange-events Infographic: An Overview of Compromised Bitcoin Exchange Events] (Jan 29)		<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/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22)		<ref name="cointelegraph-107">[https://cointelegraph.com/news/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22, 2020)</ref>

	[https://www.coindesk.com/coinrail-exchange-hacked-loses-possibly-40-million-in-cryptos Coinrail Exchange Hacked, Loses Possibly $40 Million in Cryptos - CoinDesk] (Feb 23)		<ref name="coindesk-140">[https://www.coindesk.com/coinrail-exchange-hacked-loses-possibly-40-million-in-cryptos Coinrail Exchange Hacked, Loses Possibly $40 Million in Cryptos - CoinDesk] (Feb 23, 2020)</ref>

	[https://techcrunch.com/2018/06/10/korean-crypto-exchange-coinrail-loses-over-40m-in-tokens-following-a-hack/ Korean crypto exchange Coinrail loses over $40M in tokens following a hack – TechCrunch] (Feb 23)		<ref name="techcrunch-141">[https://techcrunch.com/2018/06/10/korean-crypto-exchange-coinrail-loses-over-40m-in-tokens-following-a-hack/ Korean crypto exchange Coinrail loses over $40M in tokens following a hack – TechCrunch] (Feb 23, 2020)</ref>

	[https://thenextweb.com/hardfork/2018/06/11/coinrail-cryptocurrency-exchange-hack/ South Korean cryptocurrency exchange hacked for nearly $40M] (Feb 23)		<ref name="thenextweb-142">[https://thenextweb.com/hardfork/2018/06/11/coinrail-cryptocurrency-exchange-hack/ South Korean cryptocurrency exchange hacked for nearly $40M] (Feb 23, 2020)</ref>

	[https://news.bitcoin.com/crypto-exchange-coinrail-recover-cryptocurrencies/ Crypto Exchange Coinrail Reopens with Offers to Recover 11 Cryptocurrencies \| Exchanges Bitcoin News] (Feb 23)		<ref name="newsdotbitcoin-143">[https://news.bitcoin.com/crypto-exchange-coinrail-recover-cryptocurrencies/ Crypto Exchange Coinrail Reopens with Offers to Recover 11 Cryptocurrencies \| Exchanges Bitcoin News] (Feb 23, 2020)</ref>

	[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 25)		<ref name="newsdotbitcoin-160">[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find \| Security Bitcoin News] (Feb 25, 2020)</ref>

	[https://cryptopotato.com/lessons-learned-from-the-biggest-crypto-hacks-in-history/ Lessons Learned from the Biggest Crypto Hacks in History] (Feb 25)		<ref name="cryptopotato-161">[https://cryptopotato.com/lessons-learned-from-the-biggest-crypto-hacks-in-history/ Lessons Learned from the Biggest Crypto Hacks in History] (Feb 25, 2020)</ref>

	[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25)		<ref name="blockexplorer-162">[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25, 2020)</ref>

	[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 26)		<ref name="fintechnews-164">[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks \| Fintech Singapore] (Feb 26, 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=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)		<ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref>

	[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8)		<ref name="youniversitytv-7677">[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved \| YOUniversityTV] (May 8, 2022)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/coinrailexchangehack.php}} This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done t..."

2023-01-24T21:25:39Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/coinrailexchangehack.php}} This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done t..."

New page

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

This hacking took place after a government security inspection by South Korea, and the hack included a significant amount of bitcoin. As the issue was related to vulnerability in the platform, it’s safe to say that the funds were in a hot wallet. ERC20 tokens are especially challenging to secure as there is no native multi-sig system built in, and it can only be done through a risky smart contract. CoinRail displays presently as a “403 error” when viewed from most countries, however viewing from some countries such as Singapore appears to display the website.

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

== About CoinRail ==
“Korea-based coin exchange Coinrail lost more than $40 million in altcoins (ICO-issued tokens) in an apparent weekend cyber heist. Most notably, the hackers got away with $19.5 million worth of NPXS tokens that were issued by payment project Pundi X’s ICO. On top of that crypto loot, “they scored a further $13.8 million from Aston X, an ICO project building a platform to decentralize documents, $5.8 million in tokens for Dent, a mobile data ICO, and over $1.1 million Tron, a much-hyped project originating from China,” "However, Coinrail only provided the names of some of the tokens that were taken in the alleged breach without disclosing the exact amounts at stake. These included the NPXS token from the Pundi X project, ATC from Aston and the NPER project’s NPER token." “The biggest hit was taken by payment processing startup called Pundi X, with around 3% of total NPXS token supply affected. The project’s team was very eager to cooperate by freezing the stolen tokens immediately and halting trading to help with the investigation.” “A total of eleven cryptocurrencies were stolen, Coinrail revealed. They are dent (DENT), tradove b2bcoin (BBC), ether (ETH), jibrel network (JNT), bitcoin (BTC), kyber network (KNC), storm (STORM), tron (TRX), pundi x (NPXS), aston (ATX), and nper (NPER). Funds in DENT, BBC, and ETH have been fully recovered; customers can start trading and withdrawing them. “Recovery [is] in progress” for JNT, the exchange detailed. The remaining seven cryptocurrencies have not been fully recovered, including BTC.” “A month later, on July 15, the exchange resumed trading and offered the victims two compensation schemes: a gradual refund through the purchase of stolen cryptocurrency and compensation with Coinrail RAIL tokens, which can then be converted into a cryptocurrency at the inner rate.”

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

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 - CoinRail Exchange Hack
!Date
!Event
!Description
|-
|June 1st, 2018 12:01:02 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://www.thecoinrepublic.com/2020/01/21/south-korean-government-under-fire-as-3-more-crypto-platforms-hacked/ South Korean Government Under Fire As 3 More Crypto Platforms Hacked - The Coin Republic: Cryptocurrency , Bitcoin, Ethereum & Blockchain News] (Jan 30)

[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/from-coincheck-to-bithumb-2018-s-largest-security-breaches-so-far From Coincheck to Bithumb: 2018’s Largest Security Breaches So Far] (Feb 22)

[https://www.coindesk.com/coinrail-exchange-hacked-loses-possibly-40-million-in-cryptos Coinrail Exchange Hacked, Loses Possibly $40 Million in Cryptos - CoinDesk] (Feb 23)

[https://techcrunch.com/2018/06/10/korean-crypto-exchange-coinrail-loses-over-40m-in-tokens-following-a-hack/ Korean crypto exchange Coinrail loses over $40M in tokens following a hack – TechCrunch] (Feb 23)

[https://thenextweb.com/hardfork/2018/06/11/coinrail-cryptocurrency-exchange-hack/ South Korean cryptocurrency exchange hacked for nearly $40M] (Feb 23)

[https://news.bitcoin.com/crypto-exchange-coinrail-recover-cryptocurrencies/ Crypto Exchange Coinrail Reopens with Offers to Recover 11 Cryptocurrencies | Exchanges Bitcoin News] (Feb 23)

[https://news.bitcoin.com/crypto-exchanges-wallets-hacked-korea/ Total of 7 Crypto Exchanges and 158 Wallets Hacked in South Korea, Police Find | Security Bitcoin News] (Feb 25)

[https://cryptopotato.com/lessons-learned-from-the-biggest-crypto-hacks-in-history/ Lessons Learned from the Biggest Crypto Hacks in History] (Feb 25)

[https://blockexplorer.com/news/biggest-cryptocurrency-hacks-2018/ The Biggest Cryptocurrency Hacks of 2018 (A Year in Which $1 Billion Crypto Was Stolen)] (Feb 25)

[https://fintechnews.sg/23594/blockchain/cryptocurrency-hack-binance/ A Look Back on Some of the Most Devastating Crypto Hacks | Fintech Singapore] (Feb 26)

[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=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)

[https://www.youniversitytv.com/crypto-blockchain/korean-self-regulatory-crypto-industry-body-under-question-after-12-crypto-exchanges-approved/ Korean Self-regulatory Crypto Industry Body Under Question After 12 Crypto Exchanges Approved | YOUniversityTV] (May 8)