Mercatox EOS Breach

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' section 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.

Mercatox

According to SlowMist, there was a breach of the Mercatox platform in March 2019, and thousands of EOS were stolen.

No other sources can back up this hack. There were some minor hacks in 2018 as well, that did not report the loss of any funds.

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

About Mercatox

"Mercatox is a centralized cryptocurrency exchange founded in October 2015. At the moment, it has over half a million active users. By some accounts, this exchange is one of the top 100 cryptocurrency exchanges by trading volume. Mercatox supports numerous cryptocurrencies (over 400 coins which means that some of the currencies can be barely found on other exchanges) and provides a convenient trading interface." "Mercatox ICO started on 2016-11-20."

Mercatox "is a Trading Platform for the user that want to trade cryptocurrency by using Bitcoin, Ethereum and Litecoin." "Mercatox is a service for accessing e-currency and cryptocurrency exchange markets. It is a peer-to-peer exchange of electronic currencies, where users can exchange any digital title signs- E-wallet with a wide range of payment instruments for personal and commercial use-convenient and advantageous platform for trade."

"Mercatox came as one of a big cryptocurrency exchange as the answer for the people who want to trade cryptocurrency. Being a modern service for accessing the cryptocurrency exchange market which can be used by all trader levels - Beginner to Professional." "We are always glad to provide a convenient experience for users to access Cryptocurrency Market on our exchange by giving the interesting interface, quick responding and best support."

"Mercatox with its 600,000+ users has been listed on Coinmarketcap as the one of top 100 exchange - per November 2019 and we hope we can further be developed with our various future development plans." "Mercatox is located in the United Kingdom. However, users from around the globe can access the exchange, including those based in the United States.""

"[O]n January 2, 2018, Mercatox posted the following on its Facebook page: “Due to a high overload of our system and attempts of DDoS attacks, we forced temporarily to suspend the website for upgrading our hardware and software. The service will be restored as soon as possible. All coins are SAFE! Sorry for the inconvenience.”"

"May 20, 2018 - Following a sudden ~15 hour maintenance due to 'hackers', Mercatox has reopened with sudden restrictions on trading and (most concerningly) fund withdrawals on some users, including myself. The community is advised to avoid the exchange until issues are resolved. Bitgrail exhibited a nearly identical pattern of behavior directly leading up to its insolvency. This is a very upsetting turn of events for me, but I hope that others can avoid the same problems as Mercatox is still taking new deposits."

"Hard_fail attack" "In March 2019, Mercatox Exchange was attacked, losing thousands of EOS;" "The attacker launched a hard_fail attack on the exchange and profited thousands of EOS."

"Mercatox exchange emphasizes on their website that the security of the customer has a high priority. However, unlike others, they do not specify which safety measures they use but advice their customers on how to keep their accounts safe."

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

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 - Mercatox EOS Breach
Date	Event	Description
March 15th, 2019 12:00:00 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?