CryptoRush Hack
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The primary issue here appears to be numerous exploits in the various alt coin withdrawal processes which CryptoRush handled through hot wallets. This seems to be based on the service being quickly coded in a few short months.
This exchange or platform is based in United States, or the incident targeted people primarily in United States.[1][2][3][4][5]
About CryptoRush
While CryptoRush used a .in extension[6] which is the country code of India, the exchange was actually based in the United States. CryptoRush appears to favour small alternate currencies, and was aiming to be a top cryptocurrency exchange[6]. The founder was reportedly named Kristian, while the other team members were reportedly named Matt and Chris, who joined after beta[6].
Crypto Rush strives to help give all coins a chance. We aim to be at the top of the crypto currency exchanges as we grow, we offer low fees compared to other exchanges. We also want to give new coins a chance and have a low cost system to help get coins in. When a coin goes down, users will be automatically alerted via twitter and e-mail and the markets suspended to secure your coins! Thank you for using Crypto Rush!
Crypto Rush started by the owner Kristian in 2014 was originally to be just one market. But soon evolved into more, and even more. Matt joined the team fairly soon into development as co-owner, within a fortnight the basis was written from the ground up with security in mind.
When beta launched, Chris joined the team and helped increase productivity with his skillset
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 |
|---|---|---|
| March 11th, 2014 | Date Widely Cited | The date of the incident as reported by sources including Kyle Gibson[1]. |
| March 26th, 2014 5:02:01 AM MDT | Insider Information Leak | A CCN article sheds visibility into the lack of funds in the CryptoRush exchange platform[7]. A support worker at CryptoRush, named DogeyMcDoge, has leaked inside information regarding the exchange's troubles. This leak sheds light on the challenges faced by CryptoRush in the past month, including two hacking incidents and unorthodox methods to recover losses. Despite attempts to reassure users with solutions like CryptoRushShares, transparency issues persisted, leading to insolvency. DogeyMcDoge's confession has been confirmed by CryptoRush's administrators, who announced an official statement forthcoming. Meanwhile, CryptoRush has appointed a new CEO and promised to reimburse stolen funds. However, doubts linger about the exchange's ability to address its issues effectively[7]. |
Technical Details
https://www.ccn.com/cryptorush-support-worker-leaks-inside-info
Total Amount Lost
Losses were reportedly up to 950 BTC[1] and 2500 LTC[4].
The total amount lost has been estimated at $800,000 USD[1].
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?
"The guilt was starting to build up inside of me. I answered very few tickets the week of the 16th. I was conflicted, but I worked at my full time job >40 hours that week, so it kept my mind off of things a little. The issues continued. I kept suggesting ways we could maybe get some BTC back, arbitrage, etc. We didn’t even have enough funds for that. I wanted so bad for the exchange to stay afloat, thinking “Maybe tomorrow will bring us back our volume!” But alas, the problems with Zeit, and BTC withdrawals killed our volume. There was no coming back."
The issue was featured on several lists including Kyle Gibson[1], and the Idex Blog[4].
Total Amount Recovered
There do not appear to have been any funds recovered in this case.
The exchange issued a “Debt Management Plan” which outlined plans and potential refunds for victims[4].
Ongoing Developments
What parts of this case are still remaining to be concluded?
General Prevention Policies
Coming soon.
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.
References
- ↑ 1.0 1.1 1.2 1.3 1.4 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents - Kyle Gibson (Jan 25, 2020)
- ↑ List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses - BitcoinTalk (Feb 15, 2020)
- ↑ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5, 2020)
- ↑ 4.0 4.1 4.2 4.3 A Complete List of Cryptocurrency Exchange Hacks [Updated] - Idex Blog Archive February 15th, 2021 4:34:24 AM MST (Accessed Mar 26, 2022)
- ↑ Bitcoin’s Correction Could Well Have Shaken Out Potentially Damaging Investors - CoinTelegraph (Mar 26, 2022)
- ↑ 6.0 6.1 6.2 CryptoRush Homepage Archive March 17th, 2014 5:05:38 AM MDT (Accessed Mar 1, 2024)
- ↑ 7.0 7.1 CryptoRush support worker leaks inside info - CCN Archive June 24th, 2019 1:37:19 AM MDT (Accessed Feb 27, 2024)
- ↑ https://web.archive.org/web/20190624173514/https://pastebin.com/qW3xRmcL (Accessed Feb 27, 2024)