On Thursday, KickICO an initial coin offering support platform reported that it had lost $7.7 million following a hack. In a blog post seen today, the CEO of the ICO platform has asked token holders to remain calm and promised that they will be fully refunded the lost tokens.
Anti Danilevski, the CEO of the platform says his team learned of the attack after several complaints from victims who couldn’t access their tokens worth over $800,000. He adds that the breach helped hackers gain access to the KICK smart contract where the platform’s tokens are stored.
After this realization, his team carried out an investigation and discovered that 70 million KICK tokens had been stolen which translates to $7.7 million at the current exchange rate.
Danilevski, says his team has regained control over the smart contract and they are asking anyone who had their tokens stolen to email the platform at email@example.com so that the funds can be returned to their wallets.
An excerpt from the blog post reads:
“The hackers gained access to the private key of the owner of the KickCoin smart contract. In order to hide the results of their activities, they employed methods used by the KickCoin smart contract in integration with the Bancor network: hackers destroyed tokens at approximately 40 addresses and created tokens at the other 40 addresses in the corresponding amount. In result, the total number of tokens in the network has not changed. But thanks to the rapid response of our community and our coordinated teamwork, we were able to regain control over the tokens and prevent further possible losses by replacing the compromised private key with the private key of the cold storage.”
However, despite the unfortunate incident, the ICO platform has apologized for the inconvenience and has promised to return all stolen tokens to the wallets of KickCoin holders.
Now that KickICO is the latest to suffer an attack, what measures should exchanges take to safeguard themselves from hackers? Share your thoughts in the comment section below.