Trade.io Compromised, USD 11.5 Million Stolen From Cold Storage Wallet

Exchanges, News

50 Million in Trade tokens (TIO) have been misappropriated from the cryptocurrency trading exchange and blockchain services provider Trade.io. While hacks are becoming alarmingly normal within the cryptocurrency space, this is unusual given that the funds were kept in cold storage, regarded as the ultimate in terms of crypto storage security. According to Trade.io

“While this is an extremely strange situation, unfortunately, breaches of cold storage is not unprecedented even when following security protocol to a “T.” We use industry recommended cold storage which are maintained in safety deposit boxes in banks, along with all corresponding materials. We have confirmed that the safety deposit boxes were not compromised.”

The Trade.io cold storage breach

The Trade.io hack is not as severe as it could have been. Initially, over 50 Million TIO tokens were accessed from the cold storage wallets with a potential value of USD 11.5 Million according to the latest Trade.io update. The tokens were mainly transferred to the Bancor and Kucoin exchanges, who assisted in the investigation. Because of the swift action taken, the damage was mitigated, and the hackers were only able to access 1 Million TIO. The value of these tokens currently stands at USD 230,000. The maximum loss to the network stands at this value. As per CEO Jim Preissler –

“Thanks to the fast action by management and partners, it’s important to note that although the theft of TIO from a cold storage wallet is a major crime and inconvenience, at no point were client assets under threat. Technical security on the exchange and client funds were never compromised and have not been affected.”

On the other hand, a cold storage hack is certainly not good publicity, and as a result, the coin is set to fork by EOD, October 24th, New York Time. The new token will be the TIOx and it will start trading on October 31st. Trade.io is offering a bounty of USD 250,000 to anybody who comes forward with information regarding the breach.While the company did well to contain the hack so swiftly, a security breach at such an early stage does not look good for a company. The description underneath its blog still reads “providing the ultimate in security.” The nature of the attack remains a mystery until further updates are provided.

What is Trade.io?

Trade.io is a cryptocurrency trading exchange that also offers a suite of financial services. They provide ICO consulting, liquidity pools, partnerships, and angel investing. The exchange is designed to be fast with minimal fees, providing exposure to a variety of cryptocurrency assets. They eventually intend to add CFDs, FX, and Global Equities in line with regulatory acceptance.

One of the most interesting aspects of Trade.io is the liquidity pool, where people are paid interest daily based on the amount of TIO tokens they put in. Trade.io start the pool with 50 Million tokens. Trade.io is based in Switzerland and is one of the multiple exchanges attempting to build next-generation crypto trading platforms. ETERBASE is also based in Europe and aims to become the world’s first fully regulated exchange with a completely new trading experience geared towards digital assets.

Digital Nomad with an interest in Zen and Blockchain technology.

Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.