In yet another case of security breach, Swiss-based crypto exchange Trade.io has been hacked on October 21. The exchange reported that nearly $8 million crypto funds were stolen from a cold storage wallet that was located in a safety deposit box at a local bank. Trade.io stated in its blog that it has lost 50 million Trade Tokens (TIO), its native cryptocurrency worth around $7.5 million. However, as per the latest update shared by the exchange, it has limited the loss to an absolute maximum of 1 million TIO, worth around 230,000 USD.
What made this hack unique was that Trade.io claimed to have been utilizing cold storage. Cold storage typically involves storing items, in this case, cryptocurrencies offline. This means that they are difficult to steal or control. So it is rather unusual to see the funds disappear as they have.
The assets stolen from crypto exchange Trade.io were transferred to Bancor and Kucoin crypto exchange before the Swiss startup finally took note of it and realized that something was suspicious and immediately asked the transactions to be frozen.
The Swiss crypto exchange announced on October 23 that it has decided to fork its native token TIO in order to protect all TIO holders. This move would also make the hacked TIO tokens worthless. The exchange has named its forked token as Trade Token X (TIOx). The hard fork is scheduled to take place on October 24. Trading of the TIOx token will commence from October 31 on the Trade.io exchange platform, as stated in the BCFocus report.
Crypto exchange Trade.io also stated that while this is an extremely strange situation, breaches of cold storage are not unprecedented unfortunately despite following security protocols to the “T”. The exchange also added that it uses industry recommended cold storage that is maintained in safety deposit boxes in banks along with all corresponding materials. Trade.io confirmed that the safety deposit boxes were not compromised during the hack, as reported on Blockonomi.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]