Bitcoin exchange, Poloniex, loses 12.3 percent of funds

Share this article:

Crytocurrency exchange Poloniex announced on Tuesday that a hacker had successfully made away with 12.3 percent of its Bitcoins.

Addressing the incident on Bitcoin Forum under the moniker “busoni,” the owner of the exchange revealed that the attacker leveraged a vulnerability in the website's withdrawal protocol which allowed them to swipe the Bitcoins.

By placing several withdrawals at the same time, they're all processed “at more or less the same time,” he wrote. While the overdrawn accounts result in a negative balance, Poloniex security features did not “explicitly” look for negative balances.

Once the abnormal withdrawal activity was detected, Poloniex froze transactions before any more damage could be done, unlike exchange Flexcoin, which lost all of its funds.

The exchange owner plans to repay all customers through a personal donation and through exchange fees, which were temporarily raised.

Share this article:
You must be a registered member of SC Magazine to post a comment.

Sign up to our newsletters

More in News

Researchers observe more than a hundred connections to 'Backoff' sinkhole

Researchers with Kaspersky Lab were able to sinkhole two command-and-control servers used by certain Backoff point-of-sale malware samples.

Judge lifts stay but Microsoft won't hand over emails during appeal

A judge has lifted a suspension of a previous order compelling Microsoft to hand over customer emails stored on a server in Ireland.

Home Depot investigates possible payment card breach

Home Depot investigates possible payment card breach

Home Depot said on Tuesday that it is working with its banking partners and law enforcement to investigate a possible data breach.