Fintech Company Taylor Hacked, $1.5 Million in Ether Stolen

Fintech Company Taylor Hacked, $1.5 Million in Ether Stolen

Blockchain Ethereum Security
May 27, 2018 by Alex Hall
177
Taylor, a new fintech company out of Brazil, launched an ICO recently to raise funds for their concept of a smart trading assistant and its own token called TAY. Unfortunately, the company’s platform has been hacked by a group of attackers who made off with 2,578 ETH (or roughly $1.5 million), including a share of
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Taylor, a new fintech company out of Brazil, launched an ICO recently to raise funds for their concept of a smart trading assistant and its own token called TAY. Unfortunately, the company’s platform has been hacked by a group of attackers who made off with 2,578 ETH (or roughly $1.5 million), including a share of some of the TAY tokens issued by the company.

The company made a blog post on Medium following the attack stating that they are not yet sure how the attack was carried out or exactly which part of the system failed. However, they do have their suspicions since another company called CypheriumChain was also recently hacked and over 17,000 ETH coins were stolen, a whopping $9.8 million. We have seen issues like this before with hackers infiltrating seemingly secure areas of a platform and transferring coins into their own wallets to then be sent to off-platform addresses where no one can touch them.

Ethereum based tokens and ICOs have been the target of many attacks which have seen hundreds of millions of dollars stolen or lost in digital oblivion. This time, it seems that the hackers were extremely coordinated in their efforts and this event does not seem like the work of amateurs. After the attack was complete, the Taylor team was able to figure out how the hackers were able to make all of these transfers without being noticed. It seems the hackers were able to infiltrate and take control of the company’s 1Password files on their system, giving them access to information which could be used to quietly transfer a large number of ETH to their own wallet and then off of the site without the original owners knowing.

Luckily the company has managed to halt dome of the hacker’s progress. Usually when cryptocurrencies are stolen from one platform they are immediately transferred to another platform, usually a decentralized one, where it can then be exchanged back into another kind of crypto or into fiat where it can no longer be tracked on the blockchain. Taylor contacted other exchanges like IDEX which delisted the TAY coin until it can be determined how to prevent the hackers from carrying out another attack.

The company’s founder, Fabio Seixas, went on a Brazilian news outlet called Portal do Bitcoin and revealed that Taylor would be hiring a company specifically to investigate this attack further, adding:

“Soon, we will reveal an action plan both in relation to company’s operations and what will happen to the token. For the time being, I cannot clarify more details about the token, otherwise, the hacker might move ahead of our actions.”

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