Wemix denies cover-up amid delayed $6.2M bridge hack announcement

6 hours ago 11

Wemix Foundation CEO Kim Seok-hwan said they had nary volition of concealing a hack connected its bridge, which led to implicit $6 cardinal successful losses.

In a property conference, Kim reportedly said determination was nary effort to screen up the incident, adjacent though the assemblage pointed retired the announcement was delayed.

On Feb. 28, implicit 8.6 cardinal WEMIX tokens were withdrawn owed to an onslaught connected the platform’s Play Bridge Vault, which transfers WEMIX to different blockchain networks. The institution lone made an authoritative announcement 4 days aft the attack.

According to Kim, the announcement was delayed owed to the anticipation of further attacks and to debar causing panic successful the marketplace due to the fact that of the stolen assets.

Wemix CEO outlines risks of premature announcement

Wemix said the hacker broke into their strategy by stealing the authentication cardinal for the company’s work monitoring strategy of Nile, its non-fungible token (NFT) platform.

After the theft, the hacker spent 2 months preparing earlier randomly creating abnormal transactions. The hackers attempted to retreat 15 times but lone succeeded with 13 withdrawals, taking distant 8.6 cardinal WEMIX tokens and selling them successful exchanges extracurricular South Korea.

Kim explained that upon becoming alert of the hack, they instantly unopen down their servers and began their analysis.

The enforcement added that they filed a ailment against the unidentified hacker with the Cyber Investigation Team of the Seoul National Police Agency. The Wemix CEO said the authorities had already started investigating the matter.

Kim said that determination was a hazard successful making a premature announcement. The CEO said that successful a concern wherever the penetration method was not identified, they could beryllium exposed to further attacks.

Kim besides reiterated that the marketplace had already seen immoderate interaction from the sold assets, and they would hazard panic selling if they announced it immediately.

During the property release, the enforcement apologized to Wemix investors, saying that the disclosure hold was his telephone and that helium should beryllium held liable if thing goes wrong.

WEMIX token drops 39% amid hack announcement

Despite the effort to debar causing marketplace panic, the WEMIX token dropped by astir 40% from the time of the exploit to March 4, erstwhile the institution yet announced the hack.

The terms went from $0.70 connected Feb. 27 to a debased of $0.52 connected Feb. 28. The terms went down to $0.42 connected March 4. At the clip of writing, the crypto plus trades astatine $0.58, which is inactive 17% beneath its pre-hack price.