The integrity-challenged parent company of dodgy cryptocurrency exchange Bitfinex has been sued by a man who accuses the exchange of failing to safeguard hundreds of thousands of dollars’ worth of stolen EOS tokens.
Integra FEC recently issued a report authored by University of Texas professor John M. Griffin featuring the provocative title, “Were ETH and EOS Repeatedly Recycled during the EOS Initial Coin Offering?”
Police in Yancheg city, Jiangsu province, have been investigating the operation since it came to their attention in October 2020, according to reports.
Daniel Larimer, the CTO of Block.one has announced his resignation from the Block.one team and hints at launching a new project.
The report was published by VPN provider Atlas VPN. Having analyzed data ‘over a lifetime’, the Atlas team revealed that cybercriminals had conducted 330 blockchain hacks, making $13.6 billion. EOS DApp providers faced the most attacks with 117 breaches. Altogether, the hacks led to the loss of $28.28 million, approximately $241,758 per breach.
Digital currency exchanges were second, facing 87 attacks in that time. However, unlike EOS DApp attacks, exchange breaches were more disastrous for the victims, with $4.82 billion lost to hackers, averaging $55 million per hack.
Even more profitable for hackers were attacks on digital currency wallets. Since 2012, there have been 36 hacks on wallets, but they account for the largest share of lost funds at $7.19 billion. A single breach on a digital currency wallet made the hackers $200 million on average, the report noted.
Ethereum DApps saw 33 successful attacks, with each costing the users $11 million. The hackers also targeted blockchains themselves with 28 successful attacks since 2012. Each attack on a blockchain averaged $1.6 million, the Atlas team revealed.
The report had some positive news as well, revealing that hacks targeting the blockchain industry had dropped in 2020. In the first half of the year, the number of successful hacks stood at 31, three times lower than the same period in 2019 which saw 94 attacks. 2019 was the worst year in regards to attacks, with hackers conducting 133 successful attacks. However, the 2020 number is bound to rise since there are still two more months to go.
“Nevertheless, based on the historical data, it seems that 2020 will not reach the record heights of last year, and blockchain hacks will remain on the decline.”
This year, the biggest hack has been the KuCoin exploit that saw the exchange lose $275 million. DeFi platforms have also become popular targets, with Opyn losing an unknown amount in August and Harvest Protocol losing $24 million last month. Slovakian exchange Eterbase also lost $5.3 million in a September hack.
See also: CoinGeek Live panel on the Future of Digital Asset Security & Custody
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EOS DApps have been the most popular targets, accounting for 36% of all attacks, while attacks targeting digital currency wallets have been the most successful.
In September 2019, Block.one settled with the SEC for $24 million for conducting an unregistered securities sale in the form of an ICO; a mere fraction of the $4 billion that Block.one raised during the 2017 EOS ICO.
However, according to Jenny Vatrenko, a member of Koutoulas’s counsel, even though Block.One has settled with the SEC, “Investors who lost money have a private cause of action against Block1 that's not precluded by the SEC's settlement. In other words, they can sue Block one to recover their losses; the SEC fines went to the government, not investors.”
Now that Pierce has been served the legal papers, Koutoulas says that in the near future you can expect, “[the Plaintiff] will be filing an amended complaint soon. Then Block.one will try to file a motion to dismiss. If the case survives that motion, then the class certification process begins in earnest to establish who exactly lost money due to Block.one’s misconduct, and exactly how much.”" title="Brock Pierce served fraud lawsuit court papers at New York City rally" />
Block.one co-founder and 2020 U.S. presidential candidate Brock Pierce has been served papers at his recent New York City rally.
The lead plaintiffs had filed incomplete and inaccurate information with the court, including unsubstantiated accusations against Block.one.
EOS, the digital asset created by Block.One, has quietly lost its spot in the top 10 digital currencies by market cap.
Plaintiffs claim Block.one purposefully provided investors with false and misleading information about EOS to draw more investors.
The EOS Ecosystem wallet app has suddenly gone dark, leaving around $52 million in held funds inaccessible by users.
The rewards-based social network being developed by Block.one has reportedly switched away from running on the EOS public blockchain.