Japan’s Liquid Global hacked; crypto worth $97 million stolen – ET CISO
The incident was reported in a tweet by Liquid Global on Thursday. Now they are moving digital assets to secure cold wallets from warm wallets.
A blockchain analytics company, Elliptic has estimated that over $97 million worth of crypto in, , XRP and stablecoins has been stolen.
Of this, $45 million is in Ethereum that is being converted into ether to prevent the hacker from freezing the assets.
Cold wallets and hot/warm wallets are cryptocurrency wallets. Warm wallets are connected to the internet and allow users to receive, send and store tokens and are more vulnerable to thefts. Cold wallet works in offline mode.
Liquid Global has suspended deposits and withdrawals in the exchange pending investigation into the incident.
The company has claimed in a blog post, that the hacker had targeted a Multi-Party Computation wallet (MPC), which is used for warehousing, and management of cryptographic assets used by a Singapore subsidiary QUOINE PTE.
MPC is an advanced cryptographic technique in which the private key controlling funds is generated collectively by a set of parties, none of whom can see the fragments calculated by others.
However, the Japanese exchange did not explain how its security was dented.
Liquid Global assured that it is trying to trace funds and working with other exchanges to freeze and recover funds. It also assured that it would do everything in its power to mitigate the crisis and restore full services as soon as possible.
This is the second major crypto heist reported in the world of Decentralised Finance or DeFi. It comes a week later the biggest heist of $600 million cryptocurrency from a protocol PolyNetwork, that lets users swap tokens across different blockchains.