Eterbase Exchange Hacked, Don't Leave Your Funds on Any Exchange!

[Eureka_07]

Most of the time we encounter advices that we should not leave our funds on any exchanges as it is at always at risk of being stolen. But are you following it?
Don't leave your funds unless you are actively trading on that exchange.
This is ofcourse to avoid lossing money, avoid frustrations and to avoid wasting time thinking and doing something to recover the money.


An Slovakian Cryptocurrency exchage, Eterbase was recently hacked for about $5.4 million.



Eterbase said that the hackers successfuly accessed and stole funds from the Hot wallets(bitcoin, ethereum, algo, ripple, tezos, and tron) that the exchange is using for outgoing and incoming exchange operations.

Investigations are currently ongoing regarding the hacking incident as they tracked where hacked funds was sent.
The large amount of hacked funds where sent at  Binance, Huobi Global and Hitbtc. Eterbase already requested to them to freeze such funds.
Eterbase said that they have enough funds to do their obligations on their exchange investors.

I hope this one gives you some thoughts to avoid leaving money on any exchanges. Be careful!

Sources:
European Crypto Exchange Hacked for $5.4 Million in Bitcoin
Slovak cryptocurrency exchange ETERBASE discloses $5.4 million hack

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[Charles-Tim]

I read about the hacked like one or two days ago. Normally, we all know that these exchanges are often hacked, over 90 exchanges have been hacked since 201 2011. Exchanges that are often hacked this way are custodial exchanges. People are always advised not to leave their bitcoin and other cryptocurrencies on exchanges, not because of any other thing,  but because of the hackers. We can take all precausions to make sure no hackers try to hack our exchange account, but this is not the case because the exchange is hacked due to vulnerabilities from the exchange itself.

Normally, traders still need to make use of wallets, but if they want to trade, they can send the money from the wallet to an exchange account, all precautions must be taking for hackers not to double-cross. And after exchanging, you can send your cryptocurrency back to your wallet. Although, many traders are not bothered about this, but these is whales strategy which is the best but may not be convenient.

Our wallet is what we can only trust, it must also be a noncustodial wallet that has private keys. Hardware wallet that store the private key offline is the safest of all that can still be easy as an offline wallet.

But one thing about the Eterbase exchange hack is that the company says they have more funds to refund their affected customers. The exchange seem healthy as of present but under maintaince.

[DdmrDdmr]

On the topic of hacked Exchanges, this is probably the best thread that holds a compilation of mayor hacked Exchanges from 2011 onwards: Hacked Exchanges since 2011.

An interesting additional column to add to the lists in the referenced post, where Eterbase Exchange has been added, would be to know the aftermaths for each case. By that I mean whether the Exchange survived or not, and if the customers regained their funds totally/partially. Many Exchanges do not survive the hit, but some do, reimbursing the funds to their customers (I believe that is the case of Binance for example in 2019 for example).

[yazher]

Most of the time we encounter advices that we should not leave our funds on any exchanges as it is at always at risk of being stolen. But are you following it?
Don't leave your funds unless you are actively trading on that exchange.
This is ofcourse to avoid lossing money, avoid frustrations and to avoid wasting time thinking and doing something to recover the money.

Now that this thing has happened again, no one would dare to leave some crypto assets on the exchanges except for a few cryptos. This has happened before and may keep happening in the future because hackers are talented, they acquired some skills that let them access those exchanges depends on their security strength. If those exchanges won't update their security from time to time. the hackers will somehow find some way to access the necessary data to compromise their sites.

[The Cryptovator]

I have to admit that usually, we are not much caring about the left fund on the exchange even we are not trading continuously. But if in case exchange hacked then we regret about our losses. First time hearing about the Eterbase exchange and don't have an idea about their securities. Anyway, it's not surprising since most of the reputed exchange encountered hacking issues even they have a strong security protocol. We shouldn't depend on exchange to keep funds there, but due to high transaction fees, traders do not like to move funds always. To be honest, its an exchange responsibility to keep safe user's funds. Hacking shouldn't affect trader's funds if the exchange honest with their business. Hope Eterbase will take care of the trader's funds.

[electronicash]

this is an exit scam. the exchange is still unknown after months of promotion, they did a bounty campaign here but not everyone ever become their loyal follower. the exchange just say they got enough funds to do their obligations but its just words of course.

once there will be investors demanding their funds, they will hide for months til the issues fade and investors give up. nothing is new.

[Coyster]

Now that this thing has happened again, no one would dare to leave some crypto assets on the exchanges...

I am pretty sure a lot of people would still leave their assets in custodial exchange wallets, the information reads that the Etherbase exchange hack led to a loss of 5.4 million dollars, but when Binance was hacked few years back, losses amounted to over 41 million dollars, but still people have been leaving their assets on an exchange, so this case imo wouldn't change it, looking at the amount lost its not even close to what has happened in the past. Thing is, the responsibility of being our own banks is what most people don't want to take, for example every now and then, people download wallets with malware from Google, when they already know the official website should be their only option when looking for a wallet.

To be honest, its an exchange responsibility to keep safe user's funds. Hacking shouldn't affect trader's funds if the exchange honest with their business. Hope Eterbase will take care of the trader's funds.

I agree with you mate, but how many honest exchanges are out there, it's better to have your assets in your non custodial wallet, with your private keys, than leaving that responsibility for an exchange, if they get hacked they may fail to reimburse their customers (even if they should). Exchange could go insolvent and fold up and if your asset was amongst those stolen, there's no way to recover your stolen funds.

[bob123]

I hope only a few people got burnt there.
There literally wasn't a single good reason to use that exchange over a well known and reputable one.

I wouldn't expect a relatively new exchange with less budget than the big player in this market to be even closely as secure as them.

Not using new exchange or exchanges which are known to be less secure, already reduces the risk of being a victim of such an incident.

[ReiMomo]

~snip~
this is an exit scam.

I doubt also that this is an exit scam but if the coins have been traced and they said to the exchange to freeze the fund. I don't know if someone will do that thing. We may I guess to think of an inside job of course because this is rare to happen that someone can access the cold wallet which is very hard. Cold wallet credentials need to access physical stuff like a laptop or hardware wallet before you can access it, and why has that happened.

Don't leave your fund on an exchange, that is right. If you are not actively in trading much better to pull out your fund into your wallet or much better if there's no choice, just choose a reputable exchange where you can be trusted over your fund. The reason why I always choose a reputable exchange that your fund is always secured, just like Binance, they had secured funds for their users or SAFU.

[Lordhermes]

I could remember some times ago when I hold 10,000 thecollective coin in the etherbase exchange, I suddenly received withdrawal request in my email to click confirm withdrawal, immediately I hit up support and the withdrawal was terminated.
So this is the outcome, good security had been their problem for some time, I have never favored to trade in new exchange because if low security maintenance problems.

But one thing about the Eterbase exchange hack is that the company says they have more funds to refund their affected customers.

This would be a good one if the promise is fully executed thereby will bring more trust, more traders, and creates confidence in investors to the exchange as same happened in Binance.

[Eureka_07]

this is an exit scam. the exchange is still unknown after months of promotion, they did a bounty campaign here but not everyone ever become their loyal follower. t
once there will be investors demanding their funds, they will hide for months til the issues fade and investors give up. nothing is new.

I highly doubt that this is an exit scam with the fact that Eterbase is trying to figure out and extending efforts to trace and freeze those stolen cryptocurrencies from their exchanges.

The exchange just say they got enough funds to do their obligations but its just words of course.

How did you say that the Eterbase doesn't mean their words? Rather the other way around?

We may I guess to think of an inside job of course because this is rare to happen that someone can access the cold wallet which is very hard. Cold wallet credentials need to access physical stuff like a laptop or hardware wallet before you can access it, and why has that happened.

We can't say such thing already until the result of investigations. Hackers are hackers, most of the time they don't need any employee to breach the system and the funds.
They actually access and stole funds from Hot wallets not Cold wallets.

[tbct_mt2]

Newbies - Read before using exchanges or investing.

How many people was lost money with the hack on Eterbase exchange?
how many of them was lost money because of exchange hack not first time? I mean that how many of them lost money by don't learn any lesson from their first lost with hack on exchange.

I kindly invite people who did not read my topic and people who lost money on Eterbase or on any hacked exchange, please visit my topic and read it.

[robelneo]

I feel sorry for Etherbase exchange, he is one of my old clients in my marketing service I just did one project for them last month things are going great to Eterbase and they are achieving their goals until this happens.
The management is still active in their channel and addressing all the issues, they will soon be back online

Here is the latest update coming from their channel

We would like to ask all users for support and patience. We will take all the necessary steps to secure the exchange platform and manage the re-opening as soon as possible.

The latest update can be found here:
https://medium.com/@ETERBASE/eterbase-hack-investigation-and-security-audit-is-ongoing-ecb825208850

[cryptoaddictchie]

Our wallet is what we can only trust, it must also be a noncustodial wallet that has private keys. Hardware wallet that store the private key offline is the safest of all that can still be easy as an offline wallet.

This is true. If they are planning to leave some funds on an exchange, they should at least leave not so huge funds that their all money is in there, especially the exchange is just new. I remember etherbase project before and they are just recently launched. Exchanges suffered hacked but they should guarantee insurance protection to those funds on their system.

Thats why security should always be a priority when it comes to exchange. Past events proven how dangerous funds to be on the exchange like how many already did hacked right? People never learn.

[jademaxsuy]

This is why digital offline wallets must be secured. There are diigital wallets now with feature like having a cold storage for storing volume of coins and at the same other feature that can be used is an exchange app where it can buy or spend coins stored in a different type of wallet  probably a hot wallet. Most likely exchange wallet are not safe even the establish exchange wallet like coinbase. So, the best thing that one can do is to get a digital cold storage for coin like hardware wallet and it might be good if it is a non-custodial type of wallet where you were the only user that can access your funds with no third party service involved.

[khaled0111]

What I find odd is keeping around 5.4$ million worth of assets on their hot wallets! I don't think they really need that much to "facilitate their daily trading activity".
It looks like their domain name is redirecting to google.com. No idea what they did that too! They have to keep their website up and use it to post updates. This may lead to more frustration among investors.

[Yamifoud]

I've often to leave some funds on certain exchanges for a few days before finally decided to withdraw it and not to trade again. But never experience being hacked because, in the first place, we should also have to check if that site is legit or not. The most common failure and our lapses is that we neglected to check it first, a thing that we shouldn't have to forget.

It could be frustrating but people never learn things like this until they have experience.