Hackers Created 1 Billion Fake EOS Tokens To Steal $58,000 From A Decentralised Crypto Exchange

Hackers Created 1 Billion Fake EOS Tokens To Steal $58,000 From A Decentralised Crypto Exchange

A few hackers fabricated 1 billion EOS based tokens, which they also named EOS, to purchase some real tokens from the decentralised platform Newdex. The tokens they managed to steal from users accounts had a value of $58,000, according to Newdex.

Hacks are something we are getting used to in the crypto sphere, and a few days ago two EOS gambling platforms were hacked, and $260,000 were stolen. The hacker exploited a flaw in the code and could, therefore, bypass a transfer function, which meant that their funds were not deposited to the smart contract. When they lost, they did not have to pay, but when they won, they won real money which they could cash out.

Even though hacks seems bad, it helps platform to enhance their safety and make them better. We are at the beginning of a new technology that is getting safer every day. However, hacks are still taking place, and recent news shows that the decentralised exchange Newdex got hacked. When hackers found a security flaw, they flooded to the exchange in an attempted to steal thousands worth of cryptocurrencies and nearly $58,000 were stolen from users.  

The hackers created a new EOS-based token, also named “EOS,” and used it to illegitimately purchase BLACK, IQ, and ADD tokens from exchange service Newdex. The company has since confirmed the hack.

“EOS account oo1122334455 issued 1000000000 fake EOS Token at 14:01:45  in Sept 14th, 2018 and transferred all to account dapphub12345. The account iambillgates tried to buy IPOS and ADD several times at 14:21:37 with a fake EOS, and successfully bought IPOS and ADD. After testing the feasibility of the attack, the account began to place a large order from 14:31:34 to 14:45:4. A total of 11,800 fake EOS orders were issued to purchase BLACK, IQ and ADD, and all transactions were concluded”.

According to Newdex, the fake EOS tokens were exchanged for real ones that were transferred to Bitfinex. The hackers managed to transfer 4,028 tokens three times, worth around $19,450 at current values. The total lost funds by the exchange’s users are estimated around $58,000. The exchange took responsibility for the incident and the entire loss and had fixed the issue and resumed normal transactions again.

“The Newdex team took responsibility for the entire loss and had fixed the problem in the first place and resumed normal transaction. All Newdex users, please don’t worry and use it at ease”.

Image Source: “Flickr”

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