Analysts state CoinBene's $105m transfer is consistent with exchange hacks

28 Mar, 2019
by Richard Allen
Analysts state CoinBene's $105m transfer is consistent with exchange hacks

Chepicap reported yesterday on the concerns raised by the community over a suspected hack. Today, CoinBene responded, assuring customers that their funds are 100% secure. Elementus, however, suggests something suspect may have happened. 

CoinBene went into wallet maintenance and reportedly began experiencing issues during the upgrade. A series of transfers totaling $105 million leaves CoinBene’s hot wallet and is deposited into three different addresses. This resulted in the halting of all withdrawals and deposits for eight hours. CoinBene then began moving funds to the cold wallet.

The community understandably began suspecting the worst, and their fears were only intensified by CoinBene’s failure to acknowledge that anything had happened.

Read more: Coinbene hacked? Community reacts following wallet downtime maintanance

Now, however, the exchange has responded to concerns, assuring customers that their funds are 100% secure.

Data scientists at blockchain infrastructure firm Elementus have since published details of the recent transactions which they consider to be suspicious.

While stating that they aren’t looking to “refute what CoinBene is claiming,” Elementus argues that the identified pattern of transfers and the events that followed “is consistent with how exchange hacks commonly play out.” In other words, “Large amounts of funds withdrawn quickly, period of inactivity, remaining funds secured into the cold wallet.”

Elementus also highlights the vast quantity of funds that were transferred, stating that “transfers of this size are not unheard of when an exchange is moving funds between hot and cold wallets, but that is clearly not what's happening here,” adding:

“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.”

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