BitoPro XRP Partial Payment Theft

Notice: This page is a freshly imported case study from the original repository. The original content was in a different format, and may not have relevant information for all sections. Please help restructure the content by moving information from the 'About' and 'General Prevention' sections to other sections, and add any missing information or sources you can find. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.

Notice: This page contains sources which are not attributed to any text. The unattributed sources follow the initial description. Please assist by visiting each source, reviewing the content, and placing that reference next to any text it can be used to support. Feel free to add any information that you come across which isn't present already. Sources which don't contain any relevant information can be removed. Broken links can be replaced with versions from the Internet Archive. See General Tutorial on Wikis, Anatomy of a Case Study, and/or Citing Your Sources Guide for additional information. Thanks for your help!

BitoPro

Unconfirmed by BitoPro, there was an apparent exploit where the BitoPro exchange accepted a partial payment of XRP, which may then have been withdrawn from the exchange platform.

There doesn't appear to have been any follow up by BitoPro, so it's possible that the exploit did not result in a successful withdrawal on the exchange platform, or that the exchange thought it best to avoid mentioning what had happened publicly.

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

About BitoPro

"BitoPro is developed by BitoEX team, who started BitoEX in 2014 which provides cryptocurrency solutions such as digital wallet, business application, financial auditing and more."

"BitoEX team is committed to lead digital currency industry, as BitoEX offers customers comprehensive services in excellent quality and unique branding. BitoEX is also expected to provide ease the process of entering digital currency for everyone."

"In 2017, reacting to the increasing market demand, BitoEX team starts to plan and develope cryptocurrency exchange platform - BitoPro." "The BitoEX team launched the International Digital Assets Exchange Platform - BitoPro in early 2018. Now, through the BitoPro App users can check prices in real time of BTC, ETH, LTC, BITO, MITH, TRON etc. Also the app shows market depths, allowing for more precise trading plus the function to deposit your cryptocurrencies. Managing your digital assets have never been so easy." "We are looking forward to satisfy our customer by providing fast and economical trading services."

"BitoPro is decentralized cryptocurrency exchange located in Taiwan. It has trust score 8. More than 138K traders trade on this exchange. It currently has a 24-hour trading volume around ₿444.27 from 16 coins and 26 trading pairs."

"Taiwan exchange BitoPro's XRP suffered an attack that caused a price crash and is thought to have lost about 7m XRPS." False top-up

"[A] user managed to withdraw 7 million ‘real’ XRP tokens from a Taiwan-based crypto exchange called BitoPro."

"Because often the exchange (especially the new ones supporting $XRP) wasn't aware of the existence of "partial payment"! Thus using the wrong parameter "Amount' to record the payment. The CORRECT parameter to use is and should always be "DeliveredAmount" ‼️"

"The said vulnerability allows a user to fake an XRP deposit transaction and then dump the sent “XRP” tokens on the exchange. In this case, the crooked user faked a deposit of 330,000 XRP, but the actual XRP delivered were just 0.003255 XRP. In effect, BitoPro ended up losing 7 million XRP. Bitrue took the step to expose the flaw and let other exchanges and users know about it to save them from further loses."

"According to Bitrue, there have been around 148 such transactions made since March 8. Bitrue also intimated that a user had attempted the same trick on its platform, but the attack was quickly tackled as Bitrue had already instituted measures to prevent it."

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

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.

Key Event Timeline - BitoPro XRP Partial Payment Theft

Date	Event	Description
May 2nd, 2019	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

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

The total amount lost has been estimated at $2,122,000 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?

General Prevention Policies

If there was an exploit that resulted in a withdrawal from the platform, this was the result of a misconfigured wallet on the platform.

This type of situation can be avoided by a thorough understanding of the chain being used, and detected by a shortfall of balance between the database and blockchain.

This type of situation is likely to happen only once to a platform, if not already caught by a decent team.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.