Cryptocurrencies: 2788 / Markets: 19401 Market Cap: 24h Vol:
5 months ago

Komodo Crypto Developer ‘Hacks’ Users’ Wallet to prevent an actual ‘Hack’.

This headline spells some form of confusion but actually turns out to be a smart decoy or chivalric act by the Komodo owner. The Cryptocurrency wallet developer, Komodo effectively hacked its own customers to avert an attack that could have resulted in the theft of funds worth nearly $13 million.

A first report by ZDNet had fueled a  blog post from the npm JavaScript package repository, that revealed there was a security system alert raised about a backdoor on June 5 that could have been used by hackers to rob users of Agama, one of Komodo’s older wallets.

A fair examination showed there was a malware threat with the potential to steal cryptocurrency wallet seeds and logins. Komodo and npm used the same backdoor to extract Agama users’ funds and transferred them to a safe location in a bid to stop hackers from leveraging on this loophole from the malicious code. The funds were moved away safely from hackers reach.

According to Npm: “After being notified by our internal security tooling of this threat we responded by notifying and coordinating with Komodo to protect their users as well as remove the malware from npm.”

Komodo said in a security alert: “After discovering the vulnerability, our Cyber Security Team used the same exploit to gain control of a lot of affected seeds and secure the funds at risk.” The company claims it was able to safeguard 8 million komodo (KMD) tokens and 96 bitcoin, this jointly amounts to 13million in Dollars.

Komodo has newer wallet products on its platform like Komodo wallet that is used to send, receive, and store your KMD. and has therefore advised users of the old one, ‘Agama wallet’ to move their funds as well as create new KMD and BTC addresses.  Old seeds and paraphrases should be recreated as well to prevent loss of funds by actual hackers. According to Komodo's disclaimer "...seed is the only way to access your funds. It is your responsibility to properly backup and store your seed. If you lose your seed, you lose your funds."

To that tune the platform has put up a clickable notice on its website that reads  "IMPORTANT: Security Vulnerability Was Found In Agama Wallet."

Read More-

Facebook’s anticipated reveal of its Native Cryptocurrency in June.

Does the internet make you smarter?

Blockport, a Dutch Crypto Exchange, ceases operation and Vows to Return

Is Technology Changing the Way we Read?

Open source website Receives 14 Bitcoins ($120,000) as an Anonymous Donation

Can Bitcoin or other kinds of Cryptocurrency beat down the U.S. dollar hegemony?

What is the difference between Cryptocurrency and Blockchain?

EY Has Built a Blockchain that can identify authentic wine and much more.

A new 2019 record for Bitcoin’s Price; Above $8,900.

Bitcoin Exposed to $7200 Support, an early in the day Price Dip.

Government Shuts Down Internet for a Short Time in Benin

 

 

Credits- Benedict Alibasa 

 

Anita O.

Lover of tech and blockchain.

Get Crypto Newsletter