Daily Management Review

Hackers stole $ 150,000 from investors of Experty's ICO


A few days before the start of ICO of Experty project, hackers stole $ 150 thousand from potential investors, reports Finance Magnates.

The attackers took advantage of the fact that one of the organizers gathered information about the participants in the program of proof-of-care, to make sure that the tokens will come first to all those who are really interested in the project.

Hackers received names of investors, their email and ETH-addresses. Using the received data, they launched a mail out with the invitation to take part in the pre-ICO. In their not-well-worded letter, they said that investors have to transfer ETH within 12 hours if they want to get more tokens.

The letter also indicated the address for the transfer of funds. Many investors who hoped to receive the bonus, believed this letter. Over the past few days, 74 transactions have been sent to hackers for a total of about $ 150,000.

Experty’s team responded to the incident and promised to compensate for the loss of the affected users by issuing EXY tokens and a bonus.

"We are deeply saddened by the actions of fraudsters, from which members of our community have suffered. We will contact the victims who are in our database to give out the number of EXY tokens they are relying on, as well as bonuses corresponding to their level. If someone wants to return money in the crypto currency instead, contact us in personally," writes Experty in a blog on Medium.

Recall that previously the British auditor Ernst and Young, who conducted a study of the crypto-currency market, came to the conclusion that 10% of funds raised through ICO were stolen or lost. Phishing was the most widely used hacking technique for ICO. Hackers steal up to $ 1.5 million in proceeds from ICO per month, the report says.

The study also showed that ICO's popularity has been declining since the end of 2017. Fewer than 25% of ICOs achieved their goal in November, compared with 90% in June. The problems faced by recent ICOs in achieving their goals are partly due to the lower quality of the projects, as well as the issues that have arisen around previous projects, explained Paul Brody, head of Innovation in Blockchain Technology at Ernst & Young.

In the course of the ICO, companies usually raise funds to create new technology platforms or to finance a business using crypto-currencies and blocking technology. Nevertheless, for many of these projects, the need for blockchain and crypto-currencies is often unreasonable, according to EY.

The company also noted that assessment of value of tokens during the ICO is often prone to fear of missing out on benefits and has no bearing on market indicators such as project development. The study also revealed several cases where the basic program code of the project contained hidden investment conditions that were not disclosed or conflicted with previously disclosed information. For example, information can be provided that there will be no further release of tokens, while the code may leave room for this.

source: reuters.com