KICKICO ICO Platform Hacked For $7.7 Million, Full Refund Promised
Another cryptocurrency project has fallen victim to a suspected cyber attack, this time it is KickICO – an initial coin offering support platform.
The statement released via the project’s Medium page, revealed that the attack occurred at 09:04 UTC, on July 26, 2018.
Details of the Hack
KICK’s security breach resulted when the attackers gained access to the account of the KickCoin (KICK) token smart contract on the KICKICO platform.
The suspected attackers gained control of the project’s smart contract via a private key, thus, allowing them to siphon coins from the wallet of users.
The suspected hackers made away with about 70 million KickCoin (KICK) which has a market value of about $7.7 million as at the time of the incident. But how did they achieve this?
With full access to KICK’s smart contract, the hackers replaced 40 different addresses with new fake addresses containing the same amount of KICK tokens.
After that, they transferred the tokens in the different accounts and destroyed the addresses to leave no trace.
By so doing, the hackers didn’t alter the total supply of KICK tokens in circulation hoping that such a tact would enable them to fly under the radar.
The KICK team first learned about this incident after receiving complaints from several victims. Particularly from a victim who did not find tokens worth 800 thousand dollars in their wallets.
After receiving the complaints, the KickICO team was able to regain access to its smart contract by replacing the compromised private key with the private key in its cold wallet, to protect the network and remaining user funds.
KICKICO promises full refund for hacked accounts
The attack affected a total of 40 accounts, and the ICO support company has promised that the 40 accounts would be recreated, and the users KickCoins fully refunded.
To get a refund, the team at KickICO has advised that users who lost funds in the attack to send an email to the project team.
CEO of KickICO Anti Danilevski revealed in the announcement also revealed that affected users would be reimbursed, saying:
“We’ll return [sic] exact AMOUNT of tokens to their legit owners. We apologize for the inconveniences but guarantee that the situation is under control.”
Blockchain projects have come under increasing attacks from hackers. Barely two weeks ago, Bancor, a decentralized exchange platform suffered a $23.5 million loss due to a cyber-attack.
Reaction of KickCoin (KICK)
Rather surprising, the KickCoin (KICK) has reacted positively to the news of the hack that saw the platform lose 70 million KICK tokens.
KickCoin has remained in the green for the last 48 hours and has accumulated gains of more than 5% in the process. The growth of the token remains strong with 1.68% price rise over the last 24 hours.
As at the time of this writing, KICK has a trading value of $0.11378 and is ranked as the 133rd largest cryptocurrency with an estimated market cap of $58.2 million.