Initial coin offering support platform KickICO lost $7.7 million in KICK tokens in a hack on Thursday, the company reported.
CEO Anti Danilevski wrote in a blog post that the startup’s team discovered some 70 million KICK tokens missing from its wallet after the KickCoin smart contract owner’s private key was compromised. Several users’ wallets were emptied as part of the hack, though the startup committed to returning tokens to all holders.
Danilevski said the firm first learned of the breach when users complained they could not find tokens worth around $800,000 in their wallets.
The hackers allegedly destroyed tokens on 40 different wallet addresses and generated tokens on 40 different addresses to evade detection from KickICO’s team, he said. This was possible through the way the KickCoin smart contract is integrated with the Bancor network.
KickICO has restored control over the smart contract intends to return all lost tokens to users, he said.
The platform, which launched in mid-2017, raised 5,000 ETH in a pre-ICO funding round, and now hopes to raise a further 100,000 ETH during its token sale. To that end, the project has partnered with Bancor, as well as blockchain startups Pacatum, Coinhills and Qoin.
$100 bills image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Let’s block ads! (Why?)