Jan 17, 2019
Recognized as a global leader in RegTech for blockchain, Coinfirm serves as a foundation for the safe adoption and use of blockchain. The Coinfirm AML/CTF Platform uses proprietary algorithms and big data analysis to provide structured, actionable data that solves compliance and transaction risk issues in blockchain and cryptocurrencies. The blockchain agnostic platform is currently used by anyone ranging from major financial institutions to exchanges. In addition, Coinfirm develops dedicated blockchain solutions such as the data provenance platform Trudatum that was recently integrated by the largest bank in CE.
Welcome to week 23 of the Crypto Alert of the Week series by AMLT, a series dedicated to documenting interesting or high profile frauds/hacks etc that recently happened and have been reported into the AMLT Network and show how the AMLT Network along with the Coinfirm AML Platform can help fight and prevent it in the future.
A major New Zealand Cryptocurrency Exchange with over 2M users (source), Cryptopia, announced an unscheduled maintenance on the 13th of January which caused a problem that their users could not log in, deposit or withdraw cryptocurrency assets.
An official statement has been issued by Cryptopia 13 hours later where stated that they suffered a security breach which caused significant losses.
According to the statement above we could assume that they got hacked and lost over 28773.56 ETH which was worth approximately $3.63M at the time of transaction. Stolen coins were sent to this address 0xc8b759860149542a98a3eb57c14aadf59d6d89b9 and they were transferred further to this address: 0xaa923cd02364bb8a4c3d6f894178d2e12231655c.
You can track the whole path of stolen coins thanks to Coinfirm’s tool – Vis as you can see below:
This was the first part of the attack, the second one includes tokens stored on Cryptopia’s Hot Wallet. Coinfirm has analysed this address: 0x9007a0421145b06a0345d55a8c0f0327f62a2224 and it looks like 100 different tokens were stolen resulting in a loss of approx. $13.81M.
The final amount totalled at: $17.44M which is the highest reported loss in 2019 so far.
Please see our AML reports and note that interacting with these 3 addresses may expose you to risk and end up with an increased C-Score.
AML Risk Report of "0x9007a0421145b06a0345d55a8c0f0327f62a2224"
AML Risk Report of "0xaa923cd02364bb8a4c3d6f894178d2e12231655c"
AML Risk Report of "0xc8b759860149542a98a3eb57c14aadf59d6d89b9"
The AMLT Network allows entities to report such incidences and related addresses and once the data is analyzed and confirmed to be correct, the data is implemented to the Coinfirm AML Platform and the Network Member who provided the data receives AMLT tokens as their reward. This system could allow in certain cases like this for entities to know where the stolen coins are coming from and potentially freeze them or prevent further proliferation of risk. Providing a new layer of transparency and security that the entire economy can participate in and benefit from.
According to Cryptopia, no further announcements will be made, please stay tuned we will give you heads up once further information by them is released.
If you're interested in partnering with Coinfirm or becoming an AMLT Network Member then contact us!
Thank you for your continued support and make sure to follow all of our latest updates on Twitter, Facebook, LinkedIn and Telegram Community.
The AMLT Team