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58,000 USD seized by cybercriminals from cryptoexchange by selling fake EOS

58,000 USD seized by cybercriminals from cryptoexchange by selling fake EOS
Sep 20, 2018 by Rico Wise

The cyber criminals have reportedly taken advantage over a flawed security of the cryptoexchange, flooding it with counterfeit EOS coins manufactured to purchase ADD, BLACK and IQ digital currencies from the trading network.

Newdex confirmed that an EOS account has released 1 billion suspicious EOS coins, creating buying orders for the three aforementioned digital currencies, comprising 11,800 suspicious EOS orders placed. Subsequently, the hackers have traded the coins for genuine EOS tokens.

The victim cryptoexchange has confirmed a loss of 4,028 genuine EOS coins, accounting for a sum of approximately 20,000 US dollars, which were subsequently transferred to Bitfinex and abandoning the customers of Newdex cryptoexchange with nearly 58,000 USD losses.

The exchange has identified the suspicious activity and took problem-solving measures within almost 50 minutes, although it reportedly does not intend to repay the customers.

A few days prior to the attack, the EOS community has drawn attention to the activities of Newdex, which was accused of being a face DEX and conducting deceptive marketing campaign. As a result, Newdex was reported to be dangerous, because it does in fact utilize a smart contract, but has not presented the source-code of this main server for centralized matching.

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