Kronos.io Pre-Launch Bitcoin Heist: Difference between revisions
(Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}} It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security. This exchange or platform is based in Italy, or the incident targeted people primarily in Italy. == About Kronos == "Kronos.io, a Bitcoinica-esque startup, was hacked in a...") |
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{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}} | {{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}} | ||
{{Unattributed Citations}} | |||
It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security. | It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security. | ||
This exchange or platform is based in Italy, or the incident targeted people primarily in Italy. | This exchange or platform is based in Italy, or the incident targeted people primarily in Italy. | ||
<ref name="bitcointalklistold-20" /><ref name="bitcointalk-82" /><ref name="bitcointalk-85" /><ref name="bitcointalklist-87" /> | |||
== About Kronos == | == About Kronos == | ||
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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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|- | |- | ||
|August 1st, 2012 12:00:12 AM | |August 1st, 2012 12:00:12 AM | ||
| | |Main Event | ||
| | |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 == | ||
$43 000 USD | The total amount lost has been estimated at $43,000 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 68: | Line 66: | ||
== Total Amount Recovered == | == Total Amount 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://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 27) | <references><ref name="bitcointalklistold-20">[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 27, 2020)</ref> | ||
[https://bitcointalk.org/index.php?topic=84148.0 Kronos.io questions and properties] (Feb 14) | <ref name="bitcointalk-82">[https://bitcointalk.org/index.php?topic=84148.0 Kronos.io questions and properties] (Feb 14, 2020)</ref> | ||
[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 14) | <ref name="bitcointalk-85">[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 14, 2020)</ref> | ||
[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb | <ref name="bitcointalklist-87">[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb 15, 2020)</ref></references> | ||
Revision as of 12:19, 15 February 2023
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It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security.
This exchange or platform is based in Italy, or the incident targeted people primarily in Italy. [1][2][3][4]
About Kronos
"Kronos.io, a Bitcoinica-esque startup, was hacked in an event shrouded in mystery even today. Led by Jonathon Ryan Owens, who was simultaneously running other new startups on GLBSE (an upstart Bitcoin “stock exchange”), Kronos.io hired several well-known Bitcoin personalities to do work with HTML and coding. One of these was Alberto Armandi, who was related to Bitscalper, a scam earlier that year.[36] Alberto Armandi reportedly hacked into the website he himself helped code. The vulnerability was in the withdrawal script that Alberto coded, reportedly intentionally as a backdoor.[36] Although incredible, Armandi has also released a story denying he hacked the website. Instead, he blamed the theft on Jonathon Ryan Owens intentionally pocketing the majority of the funds with only 1000 BTC being stolen by an unknown hacker.[37]"
This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.
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.
| Date | Event | Description |
|---|---|---|
| August 1st, 2012 12:00:12 AM | Main Event | Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here. |
Total Amount Lost
The total amount lost has been estimated at $43,000 USD.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
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
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?
Ongoing Developments
What parts of this case are still remaining to be concluded?
Prevention Policies
The storage of all cryptocurrency in a proper offline multi-signature wallet prevents theft by any individual party, since such a party would need the approval or breach of multiple other members of the team to spend the funds. Given operators properly educated in the protection of funds, such an attack would be entirely limited to the balance in the hot wallets in the worst case. Stronger education for exchange operators can also help ensure that they are aware of the risks.
References
- ↑ List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old] (Jan 27, 2020)
- ↑ Kronos.io questions and properties (Feb 14, 2020)
- ↑ Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread (Feb 14, 2020)
- ↑ List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses (Feb 15, 2020)