Investor Defrauded Into Buying $2 Million In Unregistered MCash Token

The crypto exchange DragonEx which is based in Singapore, came out to the public and announced that their platform was hacked on Tuesday and that the amount of lost funds is still undisclosed. In today’s latest blockchain news, we dig deeper to see what exactly happened.

The DragonEx team said that they immediately alerted the authorities in Singapore, Thailand, Estonia and Hong Kong after the attack on March 24. The team issued a report saying:

‘’Several Judicial administrations were informed about this cyber crime case including Estonia, Thailand, Singapore, HongKong etc. and we’re assisting policemen to do investigation. All platform services will be closed and the accurate assets loss recovery situation will be announced in a week.  For the loss caused to our users, DragonEx will take the responsibility no matter what.’’

The administrator of the DragonEx Telegram account said that she was able to identify the funds that were stolen from the exchange. Some of the funds were sent to the Know-your-Customer enabled exchanges such as Bittrex. Now, if the funds are stored on a Bittrex wallet and if the Singaporean exchange contacts Bittrex in request to help them recover the funds, there is a huge possibility that the funds will be frozen.

The company also said that they will take full responsibility and will continue to work hard to try and compensate the users who lost their funds. A study showed that hacking groups are not targeting crypto exchanges and hold onto the stolen funds for a year and after that they move the funds by not alarming the exchanges.

The DragonEx team published an updated saying:

‘’We have encountered attacks from hackers and our users’ crypto assets and DragonEx’s crypto assets are both stolen. International Policemen are investigating. Please wait for following announcement about the accurate loss situation.’’

If a major part of the corporate funds is lost after the attack, the exchange could find itself in a position not being able to refund the users right away or at least after the investigation is finished.

The exchanges that haven’t been hacked since they were created include Binance, Coinbase, Kraken and Gemini and they are also believed to have the strongest security and the capacity to store most of their funds in cold storage or an offline crypto wallet that is impossible to compromise.