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Bitcoin Exchange ShapeShift’s Hack an Insider Job

Last Updated March 4, 2021 4:48 PM
Samburaj Das
Last Updated March 4, 2021 4:48 PM

Following the temporary closure of trading and the subsequent downtime of the website in its entirety, bitcoin and digital currency exchange ShapeShift has now revealed that the instigating hack stemmed from an insider who previously worked with the exchange.

In a new Reddit post that followed a steady, transparent cycle of updates from the time of the initial hack, CEO Eric Voorhees revealed details of the exchange’s investigation. The exchange had suspected that the hack was an insider’s job, a former employee who isn’t with the exchange anymore.

The chief executive revealed:

Since the investigation into the ShapeShift hack last week started, we had suspicion that someone previously on the team was involved, and that this person assisted an outside hacker. We are confident now that it is indeed the case.

Last week’s hack of ShapeShift began with a malicious intrusion into the exchange’s server, one which did not result in any loss of its users’ coins. However, an undisclosed amount of money was stolen from ShapeShift’s hot wallet. Furthermore, some funds were held from being processed as a result of the website’s temporary hiatus, while the issue is being resolved.

In providing an update toward pending orders, Voorhees said:

At this point, customer refunds for prior pending orders are in the process of being resolved. Again, no customer funds were ever at risk, by design.

The CEO also stated that the exchange is working with a forensic specialist from Canadian blockchain consulting and development firm Ledger Labs.

Furthermore, it is revealed that “multiple criminal investigations” concerning the perpetrators are afoot, alongside an ongoing civil suit.

Voorhees also added that a more “detailed post-mortem” will be published after the forensic investigation is completed. Without any timelines, the CEO simply stated that the revelation would be made at “the appropriate time.”

 Featured image from Shutterstock.