Cover Protocol Suffers Cyber Attack As Exchanges Continue To Dump XRP

Cover Protocol Suffers Cyber Attack As Exchanges Continue To Dump XRP

The decentralized finance (Defi) Insurance project Cover Protocol reported a suspected activity of a hacker in its system on Monday 28th of December, which led to a $97% reduction in the COVER token. Shortly after the announcement, the dubious hacker — known as Grap.finance —took to his Twitter handle to disclose the part played during the invasion.

According to the Twitter account, the hacker disclosed he is responsible for the attack, stating that every stolen fund has been refunded. The suspected hacker sternly warned the Cover protocol to step up their security game to prevent such a future occurrence.

Reacting to the incident, Cointelegraph disclosed that more than 11,700 coins on the 1inch (25.4 mm) DEX aggregator were liquidated by the hacker, meaning nothing less than $5 million were stolen from the Cover Protocol. Cover Protocol also narrated their side of the incident, revealing that the Internet fraudsters manipulated Blacksmith’s farming contract and successfully minted infinite $COVER tokens.

They charged customers to immediately withdraw liquidity for their $COVER token (uniswap or sushiswap) because access to the farming contract has been constrained as part of the strategy to stop the cyberpunks. Meanwhile, Cover protocol is presently investigating the incident to know what went wrong and who should be held responsible for the security loophole.

Crypto world record alarming number of cyberattacks in 2020

The year 2020 is seen as one of the most successful business years for crypto industries as it record-high number of new investors. Despite the massive influx of new investors, the year is equally challenging as there were high numbers of online theft and hacking incidents.

It should be recalled that Eterbase cryptocurrency exchange’s hot wallets lost over $5.4 million to unknown hackers in September. As for KuCoin, close to $150 m in cryptocurrency was missing from its hot wallets due to cyberattacks.

2together’s €1.2 million; Lendf.me’s cryptocurrency worth $25 million; and Bisq’s cryptocurrency worth $250,000 were stolen by hackers the year. Coincheck’s domain registration service was hacked, which led to a pause in the platform’s deposit and withdrawal services. Meanwhile, it took a courageous intervention from Coinbase to block hackers from stealing BTC worth $280,000 in July.

Coinbase makes new revelation regarding XRP

In other news, Coinbase will be suspending XRP trading next year following the US SEC lawsuit against Ripple Labs Inc., which is the developer of the digital asset.

The United States’ biggest cryptocurrency exchange platform disclose via its official blog and verified Twitter account that users wouldn’t be permitted to make transactions in XRP cryptocurrency starting from 19th of January 2021. This will come as bad news to the Ripple company who has recently lost the support of big names in the industry.

However, the platform stressed that it will continue to monitor the legal proceedings and will make necessary changes as events unfold in the coming weeks. In the same vein, OkCoin has equally charged all its users to stop trading in XRP as it won’t be supported as early as the 4th of January next year.

Leave a Reply

Your email address will not be published. Required fields are marked *