CoinBene: Exchange Lost At Least $105 Million

[CryptoInsights]

Was reading news and came across this upsetting news. There are funsa transfered as per the researches.

SUSPICIOUS FACTORS

Galka presents two good reasons to believe that these are not authorized transfers. For one, the funds are being moved largely via “sweeping.” This is where you simply import the private key into a new wallet, enabling you to avoid a transaction fee. Galka writes:

The pattern of transfers between multiple intermediary wallets is not commonly seen among exchanges. It is, however, a common tactic for people who want to cover their tracks — moving the crypto through a series of “sweeping addresses” to make the trail more difficult to follow.

The other factor that raises suspicion is that the funds have quickly been sent to other exchanges, where they were sold. The tokens, for example, were offloaded via EtherDelta, a decentralized exchange whose creator recently agreed to pay a huge fine.

After leaving CoinBene, the tokens were quickly moved into Etherdelta, where they were sold for ETH. A large amount of funds were also moved into centralized Exchanges, including Binance, Huobi and Bittrex. The funds continue to move into exchanges as I write this.

IF YOU WEREN’T HACKED, WHAT’S WITH ALL THESE MOVING FUNDS?

Quick liquidation of proceeds is a major indicator that all is not well. People who withdraw from exchanges don’t immediately take them and sell them at market rate on other exchanges, at least not in these amounts. We’re talking about over 100,000 Ether.

CoinBene has yet to publicly address Elementus’ findings, even with a day of delay. They also haven’t tweeted since yesterday. Perhaps they themselves are only now discovering that something is wrong. Maybe they believed that a period of “maintenance” would help them locate lost funds.

The irony that $70 million of the funds were liquidated via EtherDelta is strong. EtherDelta is a non-custodial exchange, after all, where this type of attack is not even possible. Customers own their funds when trading there, similar to TRX.market or Newdex.io in the Tron and EOS world. The exchange is not intended for fiat conversions, but rather a method of trading Ethereum-based assets.

https://www.ccn.com/coinbene-blockchain-researchers-say-bitcoin-exchange-lost-at-least-105-million

[figmentofmyass]

here we go again..... i see they're pulling the old radio silence + "maintenance" routine.

coinbene always seemed to fake lots of volume so i'm guessing this is a really big chunk of their reserves. good luck to anyone with funds there. it sounds pretty bad.

[Duzter]

Coinbene is always in the top list of the exchanges with fake volumes. Now this news is not a big thing, because they're much used to it. These days exchanges play a big role in manipulating the market which were mostly done by the large whales in the market earlier. This too looks like a manipulation.

[buwaytress]

Not sure the article's very accurate. First of all, sweeping is NOT a way to avoid fees. A wallet sweep involves making a transaction, just like any other, and you've to pay fees as with any regular transaction. You're basically moving all funds from Wallet A to a new wallet.

Secondly, why the sudden shill for ED at the end?

In any case, a hack is less likely than an exit scam. If someone had paid the same attention to Quadriga before their purported loss of access to wallets, they'd have noticed the same: large amounts of crypto leaving exchange wallets and liquidated.

[MakeMoneyBtc]

The suspicious thing here definitely is the fact that they are moving funds from their wallets to exchanges and then sell or exchange it to different currencies. And they do it without noticing their users about what they are doing here. It should definitely be an alarming sign for anyone who holds coins on their platform and it's better to secure your coins now until they are going to mysteriously disappear.

[zgrdyg]

I think that article may be wrong. I mean look at this: "The irony that $70 million of the funds were liquidated via EtherDelta is strong"

You can't liquidate 70million dollars on etherdelta, that takes months. It has very little volume in every coin.

[hidetoshi]

This does not surprise me at all. This exchange did not have an SSL/TLS cert until after I e-mailed them about it. Kucoin is another exchange with very poor security standards.

[dothebeats]

You can't liquidate 70million dollars on etherdelta, that takes months. It has very little volume in every coin.

As was the case with any other exchanges. AFAIK if you aren't KYC'd on the highest level, they will hold your funds until such time that you were able to provide the documents that they need to make sure that all trades you will be doing is really of clean nature and no red flags are included whatsoever. $70 million being offloaded on a rather low-volume exchange, in itself, is what's really ironic to IMO, nothing more.

We are yet to hear from CoinBene as well. They haven't released a single official statement yet.

[ryzaadit]

The suspicious thing here definitely is the fact that they are moving funds from their wallets to exchanges and then sell or exchange it to different currencies. And they do it without noticing their users about what they are doing here.

With that, a huge amount, did they really successful selling that amount without makes some problem on cryptocurrency value & at the exchange?

It should definitely be an alarming sign for anyone who holds coins on their platform and it's better to secure your coins now until they are going to mysteriously disappear.

Exchange or other third parties it's not a good recommendation to store the coin/asset. Always remind other people to store your coin on your private key only. Because went you store the asset on an exchange

"Not your keys not your crypto"

[Haunebu]

Damn. Always sad to hear this stuff. First, QuadrigaX, DragonEX and now this. At this rate, majority of the users will simply stick to the most reliable options instead of wasting their time taking risks on such shady exchanges.

Also, for the love of God, stop storing your coins and tokens on exchanges people since online exchanges are the worst places to store your cryptocurrencies.

[kingpin4321]

here we go again..... i see they're pulling the old radio silence + "maintenance" routine.

coinbene always seemed to fake lots of volume so i'm guessing this is a really big chunk of their reserves. good luck to anyone with funds there. it sounds pretty bad.

Coinbene has always not been on my list of trusted exchange so this news if true doesn't come as a big surprise to me rather what surprise me is that individual are not so careful with there funds and where they do there dealings

[Nadziratel]

They've already made an announcement about this hacking issues. And they said that all investment on Coinbene in completely secure.

Their announcement if you want to read;
https://twitter.com/CoinBene/status/1110834180437336064

In a row, unfounded hack news began to be published. I'm not sure if someone is trying to create dump again, unnecessarily...

[jerrison]

the way and manner in which hackers have decided to make money out of the blockchain space via hacking of accounts has not been a good step of encouragement in the massive adoption of the technology. Coinbene happened to be an unfortunate victim of the nefarious acts of hackers as they got to steal 105million dollar from them but then it should be looked into and investigated properly.

[MakeMoneyBtc]

The suspicious thing here definitely is the fact that they are moving funds from their wallets to exchanges and then sell or exchange it to different currencies. And they do it without noticing their users about what they are doing here.

With that, a huge amount, did they really successful selling that amount without makes some problem on cryptocurrency value & at the exchange?

They probably did it with multiple exchanges and on a longer period of time but the problem should be why they did it and why users didn't got noticed about this huge move. Because those funds they transferred were surely users money since I don't think their profits would be that big.

[milewilda]

They've already made an announcement about this hacking issues. And they said that all investment on Coinbene in completely secure.

Their announcement if you want to read;
https://twitter.com/CoinBene/status/1110834180437336064

In a row, unfounded hack news began to be published. I'm not sure if someone is trying to create dump again, unnecessarily...

I dont know if the last 2 person above me do able to read up the tweet you have given?
Good thing that they do give out global announcement to wipe out the doubts of users of Coinbene.I cant really blame that these presumptions
would scattered like wildfire since we know that if there are rumors about hacking, it do easily spread out and now its being clarified and its
a good thing for its users.

[Yaunfitda]

They've already made an announcement about this hacking issues. And they said that all investment on Coinbene in completely secure.

Their announcement if you want to read;
https://twitter.com/CoinBene/status/1110834180437336064

In a row, unfounded hack news began to be published. I'm not sure if someone is trying to create dump again, unnecessarily...

There could be forces from behind who wanted to spread fear amongst investors so that they can take advantage and fatten their wallets again.

It's good that Coinbene has released a official statements to qualm the crowd that there's nothing to worry about, although I'm sure that everyone has heard about another crypto exchange hacked (Bithumb).

Again, another incident that proves that we don't need to put huge amount of funds in an exchange, just saying.

[Kemarit]

the way and manner in which hackers have decided to make money out of the blockchain space via hacking of accounts has not been a good step of encouragement in the massive adoption of the technology. Coinbene happened to be an unfortunate victim of the nefarious acts of hackers as they got to steal 105million dollar from them but then it should be looked into and investigated properly.

I don't know if you read the post above you, Coinbene said thru their official twitter account that they do some maintenance but others took it as some sort of a hack on them and then the media pick it up that cause so much confusion at that time. That's why everyone should be very careful about crypto media, because again, they just put some quick articles to for click bait and ad revenues, poor journalism practices.

[Daemon_Hell]

As was the case with any other exchanges. AFAIK if you aren't KYC'd on the highest level, they will hold your funds until such time that you were able to provide the documents that they need to make sure that all trades you will be doing is really of clean nature and no red flags are included whatsoever. $70 million being offloaded on a rather low-volume exchange, in itself, is what's really ironic to IMO, nothing more.

We are yet to hear from CoinBene as well. They haven't released a single official statement yet.

If you stole a large number of funds and do not care to lose like 50% of it - you should be able to sell it at almost any exchange. Just start selling below market and arbitrage traders will do the rest.