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Unciphered took to X (formerly Twitter) and noted that it found a vulnerability during the efforts to retrieve the lost assets. - 2
Cryptocurrency exchange Poloniex was reportedly hacked and lost about $100 Million worth of crypto assets.
Cybersecurity firm Unciphered recently came up with a concern that could result in the loss of billions of dollars to the crypto industry. It underscores a warning about a vulnerability that could affect millions of crypto wallets. This information is crucial as it can avoid a mishap before it could take place and affects crypto wallet users.
Unciphered took to X (formerly Twitter) on November 14, 2023, and noted that it found a vulnerability during the efforts to retrieve the lost assets. The suspected weakness dubbed Randstorm said to affect cryptocurrency wallets that were generated using web browsers from 2011 to 2015.
According to the firm, the number of such browser-generated wallets before 2016 could be in the millions. It also found that these wallets could have approximately $2.1 Billion worth of assets stored in it and all of it is at a risk of getting compromised.
The cybersecurity company noted that the effect could be across cryptocurrencies and blockchain networks. Along with Bitcoin (BTC), other major crypto asset wallets such as Dogecoin (DOGE), Litecoin (LTC), and Zcash (ZEC) were also affected.
Regarding the alert update to wallets at risk, Unciphered noted that it was already sent to the crypto wallets. It also informed users who created crypto wallets through browsers before 2016 to shift their assets stored in them.
Although not all wallets are affected equally, it further added, that the vulnerability is feasible enough to be exploited. The firm refrained from disclosing any other additional information about the vulnerability and how it could be exploited to ensure no illicit actor got to know it.
Poloniex $100 Million Crypto Hack Still Under Investigation
Last week, cryptocurrency exchange Poloniex reportedly hacked and lost about $100 Million worth of crypto assets. The main reason behind the stealing of digital assets was an attack on a specific cryptocurrency wallet claimed to belong to the company.
Etherscan found that $100 Million worth of transactions were made through a crypto wallet dubbed Poloniex 4. However, soon it was found that it was not an intentional transfer of crypto assets, rather it was an exploit that lost a whopping amount.
The initial estimates found that the amount could be around $60 Million but later it was confirmed that hackers took over $100 Million worth of assets.
Blockchain security firm CertiK found that the incident was the result of a fault in the “private key” of the cryptocurrency wallet. The crypto firm immediately blocked the compromised crypto wallet citing maintenance but did not disclose the actual reason.
CertiK noted that the funds were moved into four different external accounts and some of it was converted to Ethereum (ETH).
Source: https://www.thecoinrepublic.com/2023/11/15/browser-generated-crypto-wallets-at-risk-of-hacks-report/