CoinBene Experiences Prolonged Maintenance Amid Speculation of $100 Million Exchange Hack

Large-scale cryptocurrency exchange CoinBeme has been the subject of speculation concerning a alleged hack. The platform, citing “maintenance,” released a global announcement on Twitter. Though initially an elusive event, it appears that the platform has shared details with Cointelegraph that may shed light on what happened and here is a summary of those details.

On the day after CoinBene shared its maintenance announcement on Twitter, a report was published by Elementus, a blockchain infrastructure firm. The report described that the fund transfer that occurred from CoinBene had the hallmarks of a hack. According to the report,

“After leaving CoinBene, the tokens were quickly moved into Etherdelta, where they were sold for ETH. A large amount of funds were also moved into centralized Exchanges, including Binance, Huobi, and Bittrex. The funds continue to move into exchanges as I write this.”

James Edwards of Zerononcense pointed out that there is an issue with the explanation, which is that the transfer of the three tokens not involved in the hack took place a number of hours after the suspected hack. Meaning, the alleged hacker left 1.2 billion of MXM and ETH. Moreover, CoinBene ended up with #200 million of the same token after the alleged hack. It simply does not add up that the suspected hacker would leave massive value behind.

David Brierley of Howdoo also interviewed with Cointelegraph. According to the interview, Howdoo is a project affected by the alleged hack and it provided correspondence for two weeks between CoinBene representatives and his correspondences. The correspondences indicate that on March 25, 18.4 million UDOO (approximately $209,000) was removed from the CoinBene hot wallet. Brierley contacted CoinBene but was not aware of the source of the removal. At the same time, CoinBene permitted people to trade udoo tokens on the platform, even though they were nonexistent. Moreover, udoo’s price decreased.

On March 28, CoinBene released a statement indicating maintenance of the Howdoo project. The statement reads

“The UDOO project are doing maintenance upgrades recently. CoinBene has suspended UDOO’s trading function already. After the completion of the upgrade and maintenance, the transaction function will be opened and the specific time will be announced separately.”

Howdoo’s CEO shared with Cointelegraph that he believes the statement was not only false but that it was an attempt to point the finger at Howdoo’s project team concerning the problem.

At this point, the platform has not released a statement indicating anything other than maintenance issues and the hack remains mere speculation based on circumstances.

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