Cryptocurrency exchanges

Hackers target Livecoin and change cryptocurrency exchange prices

Hackers target Livecoin and change cryptocurrency exchange prices

Russian cryptocurrency exchange Livecoin has been hacked, with hackers managing to change the rates of cryptocurrencies traded on the service to earn quick profits.

The hack took place over the night of Dec. 23-24. The exchange posted on its site Christmas Eve that the service was subject to a “carefully planned attack” that it suggested may have been planned “over the last few months.”

In the hack, the company lost control over all its servers, back ends and nodes along with “new channels,” presumably referring to social media accounts. Clients were asked to stop using the service, including not depositing funds, trading or using the site’s application programming interface.

Typically a hack of a cryptocurrency exchange would involve the theft of cryptocurrency from a hot wallet. That may have occurred here as well, but where things become strange is that the hackers changed the exchange rates offered on cryptocurrencies. ZDNet reported that those behind the attack set the exchange rate for bitcoin to $450,000, Ethereum to $15,000 and XRP to $17. Having changed the exchange rates, the hackers began cashing out accounts, generating profits in the process.

Also odd is how the funds were transacted, leaving a number of questions. Given that the hackers are said to have cashed out following the inflated exchange rates, did they withdraw cash or transfer amounts to other cryptocurrencies? If they withdrew in cash, which would appear to be one path, how did they manage to obtain those amounts?

Hacks of cryptocurrency exchanges used to be a dime a dozen only a few years back but have dropped off somewhat as many companies have gotten their cybersecurity acts together. That said, they still exist and with bitcoin surging to record highs, hackers will undoubtedly be paying more attention to the segment.

Recent hacks included the theft of about $150 million from Singapore-based cryptocurrency exchange KuCoin in September and a smaller hack and theft of about $10 million in cryptocurrency from EXMO Exchange Ltd. last week.

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Author: by
Duncan Riley

Roundup of crypto hacks, exploits and heists in 2020

Roundup of crypto hacks, exploits and heists in 2020

Unlike in previous years, crypto news in 2020 has not been dominated by major exchange hacks and million dollar Bitcoin thefts. However, there have still been quite a few and most of them have originated from the nascent decentralized finance sector.

DeFi has been one of the main drivers of crypto market momentum in 2020 and it stands to reason that the emerging financial landscape has been a magnet for scammers and hackers. Largely unaudited smart contracts coupled with cloned code have been a recipe for vulnerabilities and exploits, often resulting in millions of dollars in digital assets being pilfered.

ACipherTrace report from November 2020 stated that during the first half of the year, DeFi took up 45% of all thefts and hacks resulting in over $50 million lost. That figure rose to 50% of all thefts and hacks in the second half, according to the report. Speaking to Cointelegraph, CipherTrace CEO Dave Jevans warned of a potential regulatory crackdown: “DeFi hacks now make up more than half of all cryptocurrency hacks in 2020, a trend that is attracting attention from regulators.”

He added that of greater concern to regulators is the lack of Anti-Money Laundering compliance: “Funds stolen in the largest hack of 2020 – the $280 million KuCoin hack – were laundered using DeFi protocols.” Jevans also believes that 2021 is likely to bring clarity from regulators in terms of what actions DeFi protocols are expected to take to avoid the consequences of a failure to comply with AML, Capture the Flag, and possible sanctions.

The KuCoin hack occurred in late September when exchange CEO, Johnny Lyu, confirmed that the incursion affected the firm’s Bitcoin, Ethereum, and ERC-20 hot wallets, after private keys were leaked.

By early October KuCoin said it had identified suspects and had officially involved law enforcement in the investigation. By mid-November the Singapore based exchange declared that it had recovered 84% of the stolen crypto and resumed full services for the majority of its tradable assets.

There were other exchange hacks this year, but KuCoin was the largest. In February Italian exchange Altsbit lost almost all of its funds in a $70,000 hack, and there have been a couple of other minor crypto exchange breaches. In October 2020, as many as 75 centralized crypto exchanges had closed due to various reasons, hacking being onem.

With billions of dollars pouring into DeFi protocols and yield farms, the emerging landscape became a hotbed for hackers. The first major incursion of 2020 happened on DeFi lending platform bZx in February when two flash loan exploits resulted in the loss of nearly $1 million in user funds. A flash loan is when crypto collateral is borrowed and repaid within the same transaction.

bZx froze operations to prevent further loss, but this generated a wave of criticism from industry observers claiming that it was ultimately a centralized platform after all and could be the “death of DeFi.”

Markets crashed in March resulting in a lot of collateral liquidations, especially for Maker’s MKR token, but these were not hacks. The next one of those came the following month when a wrapped version of Bitcoin called imBTC was attacked using something called an ERC-777 token standard reentrancy method. The attacker was able to siphon a Uniswap liquidity pool for all of its value, estimated to be $300,000 at the time.

April also saw Chinese lending platform dForce drained of all its liquidity using the same exploit. The hacker repeatedly increased their ability to borrow other assets and made off with around $25 million in funds.

In June, an exploit was discovered in Bancor’s smart contracts that resulted in the draining of as much as $460,000 in tokens. The DeFi automated market maker stated that they had deployed a new version of the smart contract that had fixed the vulnerability.

Balancer was the next DeFi protocol to get exploited to the tune of $500,000 in wrapped Ether pilfered from its liquidity pools using a well-planned arbitrage attack. A series of flash loans and arbitraged token swaps were carried out in an attack on a vulnerability that the Balancer team apparently already knew about.

Not so much a hack as another exploit, but bZx was in the news again in July with a dubious token sale that was manipulated by bots placing buy orders in the same block that marked the start of the token generation event. Almost half a million dollars in price pump profits was captured by the attackers.

DeFi options protocol Opyn was the next victim in August when hackers exploited its ETH Put contracts making off with more than $370,000. The exploit allowed attackers to “double exercise” Ethereum Put oTokens and steal the collateral. Opyn recovered around 440,000 in USDC from outstanding vaults using a white hat hack, effectively returning them to Put sellers.

Again, not a direct hack but a code flaw in an unaudited Yam Finance smart contract affected the rebasing of the governance token resulting in a price collapse in mid-August. The protocol was forced to appeal to DeFi whales to save it by voting for a restart as version 2.

The SushiSwap saga began at the end of August and the terms “vampire mining”’ and “rug pull” were coined. The anonymous protocol cloner and administrator known as “Chef Nomi” sold $8 million worth of SUSHI tokens causing the token price to collapse. A few days later, the protocol was rescued by FTX exchange CEO Sam Bankman-Fried, who was handed control by a consortium of DeFi whales through a multi-signature smart contract. Eventually all the funds were returned to the developer fund.

The rug pulls, or “pump and dumps” as they were termed during the previous altcoin boom in 2017, continued with a number of DeFi clones such as Pizza and Hotdog. Token prices for these food farms surged and collapsed within hours and sometimes even minutes.

In mid-October, hordes of “degenerate farmers,” or degens as they were termed, piled money into an unaudited and unreleased smart contract from DeFi protocol Yearn Finance founder Andre Cronje. The Eminence Finance contract lost $15 million when it was hacked within hours of Cronje posting teasers about the new “gaming multiverse” on twitter. The hacker returned around $8 million but kept the rest, which prompted the disgruntled traders to initiate legal action against the Yearn team over lost funds.

In late October, a sophisticated flash loan arbitrage attack on the Harvest Finance protocol resulted in the loss of $24 million in stablecoins in around seven minutes. The attack sparked debate as to whether these exploitations of the design of the system can be considered as hacks.

November was a particularly painful month for Akropolis which had to “pause the protocol” as hackers made off with $2 million in DAI stablecoin. The Value DeFi protocol lost $6 million in an all too common flash loan exploit, yield generating stablecoin project Origin Dollar was exploited for $7 million, and Pickle Finance suffered a $20 million collateral loss in a sophisticated “‘evil jar” exploit.

One that broke the mold of exploiting the system was a personal attack on an individual in mid-December. Nexus Mutual DeFi protocol founder Hugh Karp lost $8 million from his MetaMask wallet when a hacker managed to infiltrate his computer, spoofing a transaction. These types of attacks are generally less common as they involve some degree of social engineering.

The last reported flash loan attack of the year, so far, was an $8 million incursion on Warp Finance on December 18.

Many retail traders and investors have also fallen foul to phishing attempts and Ledger hardware wallet owners have also been targeted in 2020 after the personal information of some 272,000 Ledger buyers was hacked.

The majority of smart contract and flash loan exploits in 2020 will serve to battle-harden the emerging financial ecosystem as it develops. New and smarter DeFi protocols are likely to emerge next year, but, as always, scammers, hackers and cybercriminals will also up their game in an attempt to stay ahead.

A huge dose of vigilance and attention is needed to delve into the current world of DeFi, but it has come a very long way in such a short period of time, and the decentralized financial landscape of the future is constantly evolving.


Author: by

Fincen crypto rule may provide template for India

Fincen crypto rule may provide template for India

Non-custodial wallets are personal wallets resembling {hardware} or paper wallets that are maintained by customers straight. These wallets usually are not hosted by exchanges and exchanges wouldn’t have the personal keys of such wallets. Exchanges even have to finish Know your Buyer (KYC) processes for transfers to non-custodial wallets above $3,000 and maintain information of those.

Additionally Learn | Urgency to fix India’s bankruptcy code

The Fincen guidelines are open for public feedback and the final date for offering suggestions is 4 January, 2021.

In line with consultants, the brand new guidelines can present a template for cryptocurrency regulation in India. The regulatory panorama has largely been vacant after the Supreme Courtroom quashed a Reserve Financial institution of India ban on crypto-related funds in March 2020.

“The FINCEN rule won’t straight have an effect on Indian customers, nonetheless it could actually present a template for Indian regulators,” stated Kashif Raza, co founder, Crypto Kanoon, a authorized info portal for crypto customers in India.

Arjun Vijay, co founding father of the Chennai based mostly Giottus Cryptocurrency Trade concurred. “The rule impacts US people and US exchanges. However whether it is adopted by worldwide our bodies just like the FATF, it is going to have a bearing on India. I do not assume this may shift enterprise exterior the US. Exchanges exterior the US are already cautious of accepting US prospects as a result of stringent regulation within the US,” he stated.

Nonetheless in line with Vijay, cryptocurrency volumes within the US might be impacted. “The FINCEN rule will impose a further layer of paperwork on prospects when transferring cash to non custodial wallets. They must present KYC for such wallets to exchanges. This could result in some drop in crypto buying and selling on US exchanges,” he stated.

Regardless of the dearth of regulation, enforcement businesses in India incessantly ask for KYC particulars of shoppers from cryptocurrency exchanges. “As we speak all main Indian exchanges mandate KYC and enforcement businesses know this. They typically name for information from such exchanges in particular instances. India is in no way a regulation free zone,” added Raza.

There is no such thing as a legislative framework for cryptocurrency regulation within the nation.

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Diginex crypto exchange adds borrowing and lending services

Diginex crypto exchange adds borrowing and lending services

Diginex Limited (Nasdaq: EQOS), a crypto exchange operator and full digital assets financial services company, is expanding its product suite to add borrowing and lending facilities. The technology will enable customers of Diginex to lend and earn interest on their Bitcoin assets and Ether, which is the asset of the Ethereum network, as well as borrow these cryptocurrencies against their existing crypto holdings.

The crypto borrowing and lending market has increased tenfold over the past 12 months. In 2020, crypto-backed loan volumes grew to $10 billion[1] from just $1bn in 2019, driven by increased investment activity from institutions.

The market for yield enhancement opportunities for crypto assets has grown as hedge funds and institutional investors look for facilities that will allow them to earn an additional return on their crypto holdings and to enable margin trading.

Richard Byworth, CEO of Diginex commented: “Borrowing and Lending provides yield to this asset class and a necessary hedge for derivative and volatility traders as we continue to expedite the growth of crypto derivatives. We look forward to completing the integration of this institutional grade technology.”

This announcement follows Diginex’s listing on October 1st, becoming the first Nasdaq listed company with a cryptocurrency exchange and setting the industry standard in good governance. It also underscores its commitment to providing a full suite of digital asset financial services products to institutional and professional investors.

The new integrated borrowing and lending platform will manage the entire lending lifecycle, actively managing collateral throughout the term and is a key to providing efficient and liquid markets.  

The technology will seamlessly integrate with Diginex’s ecosystem to provide licensed borrowing and lending capabilities, subject to regulatory approvals.

The ability to borrow and lend on the platform is key to Diginex’s customer base of professional traders and will complement the planned suite of derivatives and trading tools including cross collateralization, portfolio margining and capital efficiency products that are being rolled out.

Shane Edwards, Head of Investment Products at Diginex, said: “With interest rates at historic lows there has never been a better time to offer crypto borrowing and lending. We are excited to unveil truly differentiated products with uniquely attractive risk return characteristics, unmatched in the traditional marketplace.”


Author: Source: diginex press release

Bitcoin at all time high, Bitcoin value surges past $26,000, largest cryptocurrency exchange, Bitcoin value

Bitcoin at all time high, Bitcoin value surges past $26,000, largest cryptocurrency exchange, Bitcoin value

Bitcoin at all-time high, value surges past $26,000

Bitcoin, the world’s most popular cryptocurrency, has surged past the USD 26,000 level to set an all-time record high, according to trading data. On Binance, the largest cryptocurrency exchange by trading volume, Bitcoin was trading at USD 26,286.74, as of 20:45 GMT on Saturday.

According to CoinMarketCap, an aggregator that compiles data from more than 20 brokers, Bitcoin was trading at $26,270.96 as of 20:47 GMT, a rise of 7.36 per cent over the preceding 24 hours.


Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive bitcoins in exchange. The coins also can be bought and sold on exchanges with U.S. dollars and other currencies. Some businesses also accept bitcoin, but its popularity has stalled out in recent years.


One bitcoin is worth roughly $20,700, according to Coinbase, a major digital currency exchange that also trades other tokens and currencies.

But the value of bitcoin is volatile and moves hundreds or even thousands of dollars in the course of a week. A month ago, it was worth less than $17,000 and a year ago it was worth less than $7,000.

Bitcoin is a highly speculative investment and has not performed as well as more traditional forms of investing, like stocks or bonds, unless a buyer was in the currency years before it caught on. For example, three years ago The Associated Press bought $100 worth of bitcoin to keep track of the currency and to possibly build stories about how businesses were accepting it. That portfolio only broke even this month.


Bitcoins are basically lines of computer code that are digitally signed each time they travel from one owner to the next. Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators — and criminals.

Bitcoins have to be stored in a digital wallet, either online through an exchange like Coinbase, or offline on a hard drive using specialized software. While the bitcoin community knows how many bitcoins exist, where they all are is anyone’s guess.


Some businesses have jumped on the bitcoin bandwagon. accepts payments in bitcoin, for example.

The currency has become popular enough that more than 300,000 transactions typically occur in an average day, according to bitcoin wallet site Still, its popularity is low compared with cash and credit cards, and most individuals and businesses won’t accept bitcoins for payments.


The bitcoin network works by harnessing individuals’ greed for the collective good. A network of tech-savvy users called miners keep the system honest by pouring their computing power into a blockchain, a global running tally of every bitcoin transaction. The blockchain prevents rogues from spending the same bitcoin twice, and the miners are rewarded for their efforts by being gifted with the occasional bitcoin. As long as miners keep the blockchain secure, counterfeiting shouldn’t be an issue.


It’s a mystery. Bitcoin was launched in 2009 by a person or group of people operating under the name Satoshi Nakamoto. Bitcoin was then adopted by a small clutch of enthusiasts. Nakamoto dropped off the map as bitcoin began to attract widespread attention. But proponents say that doesn’t matter: The currency obeys its own internal logic.

In 2016, An Australian entrepreneur stepped forward and claimed to be the founder of bitcoin, only to say days later that he did not “have the courage” to publish proof that he is. No one has claimed credit for the currency since.

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