Tether Freezes Hacker Addresses After $2.8 Million Exploitation of Fixed Float
FixedFloat, the fully automated cryptocurrency exchange, has reportedly fallen victim to yet another security breach. The hacker was able to steal approximately $2.8 million worth of cryptocurrency from the hot wallet on the Ethereum chain, due to access control issues on the platform. This hack, reported by CyversAlerts, has left users of the exchange confused and anxious as they await resolution.
Here’s what we know so far: The funds that were stolen from FixedFloat’s hot wallet were transferred to a suspicious address in the form of Ethereum (ETH), tether (USDT), Wrapped Ethereum (WETH), Dai (DAI), and USD Coin (USDC). The hacker then exchanged these funds for Ethereum on decentralized exchanges before ultimately transferring them to the eXch exchange.
Following these unauthorized transactions, the compromised hot wallet stopped functioning and the company’s website was taken offline for maintenance, further fueling users’ concerns.
In response to the breach, Tether, a stablecoin issuer, blacklisted ten addresses associated with the stolen funds, effectively freezing around $400,000 worth of USDT tokens.
Unfortunately, this is not the first time FixedFloat has experienced a security breach of this nature. A similar incident occurred on February 16, where a total of $26 million was stolen from the platform due to an access control issue.
During this previous attack, the audacious hacker managed to steal 1728 ETH valued at $4.85 million and an additional 409 BTC valued at a staggering $21 million, resulting in a total loss of $26 million in cryptocurrency. Analysis of the fund flow revealed that the stolen assets were divided among multiple addresses on the Bitcoin and Ethereum chains, with many of them ultimately being funneled to the eXch exchange. Experts speculated that the hacker may have gained access to a private key associated with one of the exchange’s addresses.
In response to the latest hack, FixedFloat confirmed the authenticity of the breach and revealed that the same hacker was responsible for both the February incident and this recent attack on the Ethereum hot wallet, which held approximately $2.8 million worth of coins. The team placed blame on a third-party service provider that they were using, stating that the hacker exploited a vulnerability in their system. They also emphasized the ongoing efforts to enhance the security infrastructure.
FixedFloat sought to reassure its customers that only the service itself was affected by the financial losses, and that user and company funds were considered to be safe. They assured users that the stolen funds were taken to ensure the liquidity of the service.
An investigation into the hacking incident is currently underway, and further details will be provided as the situation develops.
Tags: Hack