This Crypto Startup Hacks Its Own Users’ Wallets to Rescue $13 Million

Ryan Smith
Cryptocurrency developer Komodo, ingeniously, beats an exploit by hacking its own wallet to save users' funds. | Source: Shutterstock
Cryptocurrency developer Komodo, ingeniously, beats an exploit by hacking its own wallet to save users' funds. | Source: Shutterstock

By CCN: Better the thief you know than the one you don’t. Cryptocurrency platform Komodo has had to hack its users after discovering a serious security flaw in one of its wallets.

According to a press statement by the blockchain startup, Komodo’s cybersecurity team was able to ‘sweep’ in and retrieve 8 million Komodo coins (KMD) and 96 Bitcoin before hackers got hold of the exposed loot. An estimated $13 million worth of cryptocurrency was saved in the process.

A video on YouTube reveals how bad actors could have potentially gained access to Komodo users’ private keys:

Funds are Safe and Sound But Still Centralized

The Komodo team has moved all funds to two company-owned wallets in the meantime:

Owners can claim them back in the coming weeks as the details are ironed out. Komodo urged affected users to get in touch via their Discord channel:

Komodo refunds. Hacks its users.
Komodo refunds. Hacks its users.

Plans are in the works to refund Komodo users. Source: Twitter.

Read the full story on CCN.com.