As there was no post about yesterdays Encryptotel hack, I thought it is a good idea to right a quick overview on what happened. On June 22nd, late in the evening Moscow time, the ETT BlockSwap service was attacked and ultimately hacked. The amount of losses is a staggering 38.5 million ETT tokens from the Ethereum chain and a further 3.8 million ETT Waves tokens.
I translated today's interview with Encryptotel CEO Roman Nekrasov which contains some additional information about the situation:
DC: Hello, tell me what happened?
RN: At the moment, we are working on the analysis of logs on servers. It is suspected that the Incent platform (Icotech.me), which we used to conduct ICO through Icotech, and the distribution of tokens, was hacked. A little more details will be made soon via our official channels. If our servers are hacked, then we will take the full responsibility.
DC: What actions are you taking?
RN: We decided to reissue tokens on the Ethereum network. After this statement the hacker came to us and returned 20 million tokens. To return the rest, he demanded 250 bitcoins.
View the transaction from the hacker here:
https://etherscan.io/token/0xe0c72452740414d861606a44ccd5ea7f96488278?a=0xba091db085eac2055400c934c8dc989b500113a2
DC: Will you pay him?
RN: We do not negotiate with terrorists :)
DC: What is icotech.me platform? Is this not the software that Waves provided? How are Waves connected to them? Are they partners?
RN: To be honest, I do not know about the connections, you'd better contact Waves on this issue, but we worked with Icotech on the technical part of the ICO. In any case, we will find the offender in this situation, now we are working together with icotech.me and my admins are checking everything. We expect it will take a couple of days. Until then the blockswap server from Incent is not being used.
DC: Tell me why you had to release 2 tokens at once in different networks, will there be confusion? Do you use smart contracts in your platform? As far as I know, Waves does not have the technology of smart contracts, but they promise a solution in the form of a scripting language as far as I understand.
RN: It was done to unite the two communities, we equally like the Waves and ETH community. The confusion between two blockers was to be solved by the technology of the company icotech.me, it is called blockswap, In short, it changes one token to another. Now we will develop our solution, as we are not so sure about the security of their solutions. MGO is also developing its blockswap, if they finish faster, we will look into using it.
DC: Well, it remains to wish you luck in this unpleasant situation, keep us informed of developments.
RN: Thank you, expect news on our social networks.
The Encryptotel team now decided to reissue the Ethereum token. How the holders of ETT tokens on Waves platform will be compensated is still unknown. Also, the trading on Waves DEX has been disabled. What are your thoughts on this situation and its effect on Encrypotel, but also on Waves and its ICO platform icotech? To me it looks like a simillar situation that happpened during the Ethereum DAO hack, just about a year ago.
Source of the interview: Telegra.ph
Encryptotel announcement: Medium