Coinbene Hack Cover-Up - Revision history

Azoundria at 19:01, 1 May 2023

2023-05-01T19:01:29Z

← Older revision		Revision as of 13:01, 1 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/coinbenehackcoverup.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/coinbenehackcoverup.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	From the breadcrumbs, this seems pretty simple. Coinbene had a “secure” hot wallet system, which got hacked, resulting in the loss of a ton of different ERC20 tokens. The company didn’t want to appear hackable and insecure and suffer the reputation damage, so rather than be transparent about the matter, decided to ask the various teams behind the ERC20 tokens to help quietly reverse the transactions. Some, including the MaxiMine project, indulged the request, while others such as Howdoo, refused. This can be prevented by regular audits to expose any reserve shortfalls, and hot wallet insurance to cover any token losses.		From the breadcrumbs, this seems pretty simple. Coinbene had a “secure” hot wallet system, which got hacked, resulting in the loss of a ton of different ERC20 tokens. The company didn’t want to appear hackable and insecure and suffer the reputation damage, so rather than be transparent about the matter, decided to ask the various teams behind the ERC20 tokens to help quietly reverse the transactions. Some, including the MaxiMine project, indulged the request, while others such as Howdoo, refused. This can be prevented by regular audits to expose any reserve shortfalls, and hot wallet insurance to cover any token losses.

	This exchange or platform is based in International, or the incident targeted people primarily in International.		This exchange or platform is based in International, or the incident targeted people primarily in International.<ref name="cointelegraph-92" /><ref name="thenextweb-93" /><ref name="cryptoglobe-98" /><ref name="ciphertrace-99" /><ref name="cointelegraph-130" /><ref name="slowmisthacked-1160" /><ref name="cryptoxdirectory-2276" />
	<ref name="cointelegraph-92" /><ref name="thenextweb-93" /><ref name="cryptoglobe-98" /><ref name="ciphertrace-99" /><ref name="cointelegraph-130" /><ref name="slowmisthacked-1160" /><ref name="cryptoxdirectory-2276" />

	== About Coinbene ==		== About Coinbene ==
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	!Description		!Description
	\|-		\|-
	\|April 1st, 2019 12:01:19 AM		\|April 1st, 2019 12:01:19 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="cointelegraph-92">[https://cointelegraph.com/news/over-100-million-missing-coinbene-claims-maintenance-a-month-of-questions-point-toward-a-hack Over $100 Million Missing: CoinBene Claims Maintenance, a Month of Questions Point Toward a Hack] (Feb 14, 2020)</ref>		<references><ref name="cointelegraph-92">[https://cointelegraph.com/news/over-100-million-missing-coinbene-claims-maintenance-a-month-of-questions-point-toward-a-hack Over $100 Million Missing: CoinBene Claims Maintenance, a Month of Questions Point Toward a Hack] (Feb 15, 2020)</ref>

	<ref name="thenextweb-93">[https://thenextweb.com/hardfork/2019/05/01/cryptocurrency-stolen-first-quarter-2019-hack/ $356 million in cryptocurrency stolen in first three months of 2019] (Feb 14, 2020)</ref>		<ref name="thenextweb-93">[https://thenextweb.com/hardfork/2019/05/01/cryptocurrency-stolen-first-quarter-2019-hack/ $356 million in cryptocurrency stolen in first three months of 2019] (Feb 15, 2020)</ref>

	<ref name="cryptoglobe-98">[https://www.cryptoglobe.com/latest/2019/06/the-mystery-of-coinbene-s-missing-coins/ The Mystery of Coinbene's Missing Coins \| CryptoGlobe] (Feb 18, 2020)</ref>		<ref name="cryptoglobe-98">[https://www.cryptoglobe.com/latest/2019/06/the-mystery-of-coinbene-s-missing-coins/ The Mystery of Coinbene's Missing Coins \| CryptoGlobe] (Feb 19, 2020)</ref>

	<ref name="ciphertrace-99">[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19, 2020)</ref>		<ref name="ciphertrace-99">[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 20, 2020)</ref>

	<ref name="cointelegraph-130">[https://cointelegraph.com/news/most-significant-hacks-of-2019-new-record-of-twelve-in-one-year Most Significant Hacks of 2019 — New Record of Twelve in One Year] (Feb 22, 2020)</ref>		<ref name="cointelegraph-130">[https://cointelegraph.com/news/most-significant-hacks-of-2019-new-record-of-twelve-in-one-year Most Significant Hacks of 2019 — New Record of Twelve in One Year] (Feb 23, 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="cryptoxdirectory-2276">[https://cryptoxdirectory.com/hacked_2019 The 23 exchange hacks of 2019] (Aug 7, 2021)</ref></references>		<ref name="cryptoxdirectory-2276">[https://cryptoxdirectory.com/hacked_2019 The 23 exchange hacks of 2019] (Aug 8, 2021)</ref></references>

Azoundria at 08:02, 17 February 2023

2023-02-17T08:02:22Z

← Older revision		Revision as of 02:02, 17 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/coinbenehackcoverup.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/coinbenehackcoverup.php}}
			{{Unattributed Citations}}

	From the breadcrumbs, this seems pretty simple. Coinbene had a “secure” hot wallet system, which got hacked, resulting in the loss of a ton of different ERC20 tokens. The company didn’t want to appear hackable and insecure and suffer the reputation damage, so rather than be transparent about the matter, decided to ask the various teams behind the ERC20 tokens to help quietly reverse the transactions. Some, including the MaxiMine project, indulged the request, while others such as Howdoo, refused. This can be prevented by regular audits to expose any reserve shortfalls, and hot wallet insurance to cover any token losses.		From the breadcrumbs, this seems pretty simple. Coinbene had a “secure” hot wallet system, which got hacked, resulting in the loss of a ton of different ERC20 tokens. The company didn’t want to appear hackable and insecure and suffer the reputation damage, so rather than be transparent about the matter, decided to ask the various teams behind the ERC20 tokens to help quietly reverse the transactions. Some, including the MaxiMine project, indulged the request, while others such as Howdoo, refused. This can be prevented by regular audits to expose any reserve shortfalls, and hot wallet insurance to cover any token losses.

	This exchange or platform is based in International, or the incident targeted people primarily in International.		This exchange or platform is based in International, or the incident targeted people primarily in International.
			<ref name="cointelegraph-92" /><ref name="thenextweb-93" /><ref name="cryptoglobe-98" /><ref name="ciphertrace-99" /><ref name="cointelegraph-130" /><ref name="slowmisthacked-1160" /><ref name="cryptoxdirectory-2276" />

	== About Coinbene ==		== About Coinbene ==
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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	\|-		\|-
	\|April 1st, 2019 12:01:19 AM		\|April 1st, 2019 12:01:19 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 $100,000,000+ 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://cointelegraph.com/news/over-100-million-missing-coinbene-claims-maintenance-a-month-of-questions-point-toward-a-hack Over $100 Million Missing: CoinBene Claims Maintenance, a Month of Questions Point Toward a Hack] (Feb 14)		<references><ref name="cointelegraph-92">[https://cointelegraph.com/news/over-100-million-missing-coinbene-claims-maintenance-a-month-of-questions-point-toward-a-hack Over $100 Million Missing: CoinBene Claims Maintenance, a Month of Questions Point Toward a Hack] (Feb 14, 2020)</ref>

	[https://thenextweb.com/hardfork/2019/05/01/cryptocurrency-stolen-first-quarter-2019-hack/ $356 million in cryptocurrency stolen in first three months of 2019] (Feb 14)		<ref name="thenextweb-93">[https://thenextweb.com/hardfork/2019/05/01/cryptocurrency-stolen-first-quarter-2019-hack/ $356 million in cryptocurrency stolen in first three months of 2019] (Feb 14, 2020)</ref>

	[https://www.cryptoglobe.com/latest/2019/06/the-mystery-of-coinbene-s-missing-coins/ The Mystery of Coinbene's Missing Coins \| CryptoGlobe] (Feb 18)		<ref name="cryptoglobe-98">[https://www.cryptoglobe.com/latest/2019/06/the-mystery-of-coinbene-s-missing-coins/ The Mystery of Coinbene's Missing Coins \| CryptoGlobe] (Feb 18, 2020)</ref>

	[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19)		<ref name="ciphertrace-99">[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19, 2020)</ref>

	[https://cointelegraph.com/news/most-significant-hacks-of-2019-new-record-of-twelve-in-one-year Most Significant Hacks of 2019 — New Record of Twelve in One Year] (Feb 22)		<ref name="cointelegraph-130">[https://cointelegraph.com/news/most-significant-hacks-of-2019-new-record-of-twelve-in-one-year Most Significant Hacks of 2019 — New Record of Twelve in One Year] (Feb 22, 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://cryptoxdirectory.com/hacked_2019 The 23 exchange hacks of 2019] (Aug 7)		<ref name="cryptoxdirectory-2276">[https://cryptoxdirectory.com/hacked_2019 The 23 exchange hacks of 2019] (Aug 7, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/coinbenehackcoverup.php}} From the breadcrumbs, this seems pretty simple. Coinbene had a “secure” hot wallet system, which got hacked, resulting in the loss of a ton of different ERC20 tokens. The company didn’t want to appear hackable and insecure and suffer the reputation damage, so rather than be transparent about the matter, decided to ask the various teams behind the ERC20 tokens to hel..."

2023-01-25T02:59:42Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/coinbenehackcoverup.php}} From the breadcrumbs, this seems pretty simple. Coinbene had a “secure” hot wallet system, which got hacked, resulting in the loss of a ton of different ERC20 tokens. The company didn’t want to appear hackable and insecure and suffer the reputation damage, so rather than be transparent about the matter, decided to ask the various teams behind the ERC20 tokens to hel..."

New page

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

From the breadcrumbs, this seems pretty simple. Coinbene had a “secure” hot wallet system, which got hacked, resulting in the loss of a ton of different ERC20 tokens. The company didn’t want to appear hackable and insecure and suffer the reputation damage, so rather than be transparent about the matter, decided to ask the various teams behind the ERC20 tokens to help quietly reverse the transactions. Some, including the MaxiMine project, indulged the request, while others such as Howdoo, refused. This can be prevented by regular audits to expose any reserve shortfalls, and hot wallet insurance to cover any token losses.

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

== About Coinbene ==
“On March 27, 2019, ZDnet reported on a widely rumored hack on Singapore-based exchange CoinBene. At the time of the alleged cyberattack, the exchange went into maintenance mode, which undoubtedly fueled speculation.” “On Monday (March 25, 2019), there were massive outgoing transactions from CoinBene’s hot wallet to an unknown wallet that did not exist prior to that Monday. These transactions reportedly involved every single ERC-20 token (totaling 109) held by the company.” “the fund transfers out of CoinBene’s hot wallet bore all the hallmarks of a hack.” “the [CoinBene] manager admitted to not knowing the source of the intrusion — while still telling the public that there was ongoing maintenance.” "MaxiMine sent CoinBene 1.9 billion MXM, despite its announcement saying the token distribution would be on a 1:1 basis. Thus, why did CoinBene receive an extra 700,000 MXM — which were worth about $77 million at the time — from MaxiMine?" When he asked how Coinbene could continue to allow trading for tokens they do not actually have on their exchange, Brierley was told, "You don't know how centralized exchanges work, David."

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

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 - Coinbene Hack Cover-Up
!Date
!Event
!Description
|-
|April 1st, 2019 12:01:19 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://cointelegraph.com/news/over-100-million-missing-coinbene-claims-maintenance-a-month-of-questions-point-toward-a-hack Over $100 Million Missing: CoinBene Claims Maintenance, a Month of Questions Point Toward a Hack] (Feb 14)

[https://thenextweb.com/hardfork/2019/05/01/cryptocurrency-stolen-first-quarter-2019-hack/ $356 million in cryptocurrency stolen in first three months of 2019] (Feb 14)

[https://www.cryptoglobe.com/latest/2019/06/the-mystery-of-coinbene-s-missing-coins/ The Mystery of Coinbene's Missing Coins | CryptoGlobe] (Feb 18)

[https://ciphertrace.com/articles/q1-2019-cryptocurrency-anti-money-laundering-report/ Q1 2019 Cryptocurrency Anti-Money Laundering Report - CipherTrace] (Feb 19)

[https://cointelegraph.com/news/most-significant-hacks-of-2019-new-record-of-twelve-in-one-year Most Significant Hacks of 2019 — New Record of Twelve in One Year] (Feb 22)

[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)

[https://cryptoxdirectory.com/hacked_2019 The 23 exchange hacks of 2019] (Aug 7)