South Korean police take down cryptocurrency Ponzi scheme with the help of AI The perpetrators allegedly scammed $18.7 million from the elderly and retirees. See also 10 dangerous app vulnerabilities to watch out for (free PDF) Japan-based cryptocurrency exchange Bitpoint announced it lost 3.5 billion yen (roughly $32 million) worth of cryptocurrency assets after a hack that happened late yesterday, July 11. The exchange suspended all deposits and withdrawals this morning to investigate the hack, it said in a press release. Thoroughly compromised In a more detailed document released by RemixPoint, the legal entity behind Bitpoint, the company said that hackers stole funds from both of its “hot” and “cold” wallets. This suggests the exchange’s network was thoroughly compromised. Hot wallets are used to store funds for current transactions, while the cold wallets are offline devices storing emergency and long-term funds. Bitpoint reported the attackers stole funds in five cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin, Ripple, and Ethereal. The exchange said it detected the hack because of errors related to the remittance of Ripple funds to customers. Twenty-seven minutes after detecting the errors, Bitpoint admins realized they had been hacked, and three hours later, they discovered thefts from other cryptocurrency assets. Another three and a half hours later, after a meeting with management, the exchange shut down, and law enforcement notified. Two-third of stolen funds belonged to customers The exchange also said that 2.5 billion yen ($23 million) of the total 3.5 billion yen ($32 million) that were stolen were… [Read full story]
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