Home » Komodo hacks itself to Foil a possible $13 Million Theft

Komodo hacks itself to Foil a possible $13 Million Theft


To prevent potential fraudsters from accessing its users’ funds, Komodo — a Crypto wallet provider — opted to hack itself as a way of being proactive about its crypto CyberSecurity.

According to a JavaScript package repository blog post, the company decided to take that step following a Security researchers’ alert on a vulnerability in its Agama wallet. Komodo’s cybersecurity team later used the same exploit to migrate the crypto wallets that were compromised to a secure place.

To explain the circumstances, Komodo told the users the following:

“We were able to sweep around 8 million KMD and 96 BTC from these vulnerable wallets, which otherwise would have been easy pickings for the attacker.”

The exercise that Komodo took enabled it to successfully shield funds worth $13 million from a potential future hack.

For the individuals whose accounts were affected, they will have to reclaim their assets since the crypto is now held in two safe wallets.

The company also asked the Agama wallet users who still have funds to move them into its new address in the shortest time possible.

Due to security concerns, Komodo has said that it will publish a detailed analysis of the vulnerability once all funds are secure.

In the crypto world, hacking has become a common threat. For instance, Cryptopia — the now-defunct New Zealand exchange — suffered an attack in mid-January that was later found out to be almost $4.22 million worth.

Before the incident, Binance hot wallets lost 7,000 bitcoin after being compromised by viruses and phishing techniques of hackers – in a way that the exchange’s security systems could not detect.

Source: https://cointelegraph.com/news/komodo-hacks-itself-and-saves-crypto-worth-13m-after-learning-of-security-vulnerability

About the author

James Lovett

James Lovett

James is a passionate writer on cryptocurrency industry and other disruptive technologies in the crypto world. He has written several crypto articles for numerous websites and blogs over the years.

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