M2 Exchange Access Control Vulnerability
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M2 Exchange is a global cryptocurrency exchange targetting customers in the United Arab Emirates, and based in the Bahamas. On October 30th, 2024, wallets were drained across 3 chains. The company reported the issue as happening after it actually happened, and that they had resolved it within 16 minutes. The exchange has claimed that all customer assets will be fully covered.[1][2][3][4][5][6][7]
About M2 Exchange
"M2 Global Wealth Limited is a registered Digital Asset Business and is regulated and authorised by the Securities Commission of The Bahamas."
"Boost your Crypto Portfolio Sign up now and start earning more"
"High-Yield Crypto Investments Maximize your earnings on M2 with up to 8% APR on your crypto"
"Invest in Over 40 Verified Crypto Assets Diversify your portfolio with curated crypto assets"
"Protect your assets with M2's state-of-the-art security features, including multi-layer authentication and advanced encryption." "Encounter top-tier security and reliability trading on M2. Our ADGM-licensed platform guarantees your assets' protection and compliance"
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 |
|---|---|---|
| October 30th, 2024 5:19:35 PM MDT | Blockchain Withdrawal Transaction | The time when the withdrawal transaction for Ethereum was accepted on the blockchain. |
| October 30th, 2024 9:16:00 PM MDT | Reported Time Of Incident | The reported time of incident from an update released by the M2 exchange team. |
| October 30th, 2024 9:32:00 PM MDT | Time Of Swift Response | The time of the company's "swift response", assuring all customers that they have their backs and would cover any losses. They are also ready to work with authorities to recover the funds, if possible. |
| November 1st, 2024 4:34:00 AM MDT | ZachXBT Telegram Investigation | ZachXBT posts on Telegram about the exploit. |
| November 1st, 2024 4:54:00 AM MDT | Cyvers Tweet Alert Posted | Cyvers posts a tweet about suspicious blockchain transactions. |
| November 1st, 2024 4:59:00 AM MDT | PeckShield Tweets Alert | PeckShield tweets an alert about the situation which includes attribution to ZachXBT. |
| November 1st, 2024 6:22:00 AM MDT | Hacken Club Twitter Post | Hacken Club posts on Twitter with more details of the exploit. |
| November 1st, 2024 3:48:00 PM MDT | Rekt Investigation Ongoing | Rekt publishes an investigation about the incident. |
Technical Details
"Theft addresses holding stolen assets: • ETH: 0x968b6984cba14444f23ee51be90652408155e142 • BTC: bc1qu4kh7wa38xpkrp8frgxl4sak88wx0jug8n3vfj • SOL: EKko14NvgqdvNttUb8JjXkVGuUs6BTikjfN3hqW4LQoL"
Total Amount Lost
The total amount lost has been estimated at $13,700,000 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
"On October 31, 2024, at 3:16 AM (GMT+4), M2 experienced a cybersecurity incident involving $13.7 million, which was swiftly responded to at 3:32 AM (GMT+4)." "the attack had spread across ETH, BTC, and SOL chains"
"We would like to report that the situation has been fully resolved and customer funds have been restored. M2 has taken full responsibility for any potential losses, demonstrating our unwavering commitment to safeguarding our customers' interests. All services are now fully operational with additional controls in place.
We are dedicated to upholding the highest standards of security and compliance, and we are actively cooperating with relevant legal and regulatory authorities to ensure this matter is dealt with thoroughly and appropriately.
For further support, please contact the M2 Support Team."
"Welcome to the $13.7 million @M2Exchange house of horrors, where despite claiming they've caught their ghost, restless spirits still perform their midnight waltz."
"stolen USDT and SHIBA swapped to ETH immediately after the exploit."
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
"We would like to report that the situation has been fully resolved and customer funds have been restored. M2 has taken full responsibility for any potential losses, demonstrating our unwavering commitment to safeguarding our customers' interests. All services are now fully operational with additional controls in place."
There do not appear to have been any funds recovered in this case.
Ongoing Developments
What parts of this case are still remaining to be concluded?
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
- ↑ Rekt - M2 Exchange - Rekt (Accessed Nov 4, 2024)
- ↑ Telegram: Contact @investigations (Accessed Nov 4, 2024)
- ↑ Security Update (Accessed Nov 4, 2024)
- ↑ https://www.m2.com/en_AE/ (Accessed Nov 4, 2024)
- ↑ https://www.m2.com/en_AE/adgm/ (Accessed Nov 4, 2024)
- ↑ @CyversAlerts Twitter (Accessed Nov 4, 2024)
- ↑ @hackenclub Twitter (Accessed Nov 4, 2024)