Once again cryptocurrency users have fallen into a heavy loss.
KICKICO is a blockchain-based initial coin offering (ICO) support platform, which has fallen victim to a suspected cyber attack. The lost is more than 70 million KICK tokens (or KickCoins) worth an estimated $7.7 million.
On Thursday, July 26, at 9:04 (UTC), the company acknowledged a security breach. Thereby, informing its customers that an unknown attacker managed to gain access to the account of the KICK smart contracts and the tokens of the KICKICO platform.
KICKICO admitted that the company had no clue about the security breach until and unless several of its customers fell victim and complained about losing KickCoin tokens worth $800,000 from their wallets overnight.
After investigating, the company found that the total amount of stolen funds was 70,000,000 KickCoin, whose current exchange rate, is equivalent to $ 7.7 million.
KICKICO reported that suspected attackers managed to gain direct access to the smart contract of the project’s blockchain network by obtaining the private key. This eventually allowed the attacker to steal Kick Coins from the users’ wallets.
This Is How the Tokens Were Stolen
After gaining full access, the unknown hacker destroyed tokens at approximately 40 different addresses. Thereby, transferring them to 40 fake addresses controlled by him to leave no trace.
As a result, the stolen funds from the KICKICO blockchain network did not permanently destroy. And, the total number of tokens in the network remained the same after the security incident, which made the attacker to easily pass through the radar.
However, a few hours later, the project was able to fully regain access to its smart contract. And it replaced the compromised private key with the private key in its cold storage to prevent further possible losses.
KICKICO Team Says It’ll Refund Their Respective Owners
The KICKICO team has also promised to return all tokens to their owners, saying:
“KICKICO guarantees to return all tokens to Kick coin holders. We apologize for the inconveniences, but claim that the situation is under control.”
“The project team asks all those whose tokens have been stolen to email email@example.com for the return of funds to wallets.”
So, you can send an email to the KICKICO team to get your refund if you are one of those.
This incident is the latest in a long list of attacks against the cryptocurrency markets. Barely two weeks ago, decentralized exchange platform Bancor also suffered a $23.5 million loss due to a cyber-attack.