CoinMetro Hack, stolen funds and other hacks in the crypto sphere are common things. However, the technology to mitigate these attacks is not being left behind.
Coinmetro’s Proactive Response to Security Breach
Incident Detection and Immediate Response
Early yesterday at 5:30 a.m. the team of Coinmetro crypto-exchange was alerted about some suspicious activity on some of their hot wallets. This was possible because of automated monitoring using PARSIQ technology. The crypto exchange was able to spot the problem in time and lock down the system. Coinmetro’s cold wallets were not affected, and the hack impact was minimal due to the fast measures in place by CoinMetro and PARSIQ.
The Hacker’s Attempt and Preventive Measures
The hacker tried to steal large amounts of different cryptocurrencies from the exchange hot wallets, but only a small fraction of these made it way out of the exchange, thanks to the automated monitoring provided by the PARSIQ platform. PARSIQ was able to spot the problem with the withdrawals and alert the crypto exchange instantly, preventing the major part of the funds in the hot wallet from being stolen.
Official Communication Post-Incident
Coinmetro crypto exchange posted a statement on their Telegram channel.
Innovative Solution for Recovering Stolen Funds
Utilization of Blockchain Snapshot Technology
The stolen funds in yesterday’s hack included PRQ tokens. The PARSIQ platform has used a blockchain snapshot in order to hard fork their token contact. The stolen funds will be restored to the token holders before the hack. This process is like reverting the blockchain to the start it was before the hack happens. PARSIQ’s blockchain snapshot technology is also helping to recover tokens that were stolen from the recent KuCoin hack.
Proactive Measures for Fund Recovery
The team at PARSIQ utilized their advanced technology to do a snapshot of the blockchain of their token holders before the KuCoin hack. This snapshot has all the addresses with any balance and the exact amount of tokens on each address at the time before the hack.
Support for Other Projects
PARSIQ is also helping other projects recover their stolen funds. It has already taken a snapshot of NOIA Network and CarVertical and will take snapshots for the other 152 projects. And will upload it on a public landing page.
Addressing the CoinMetro Hack and Future Plans
Overcoming the Challenges of Recovery
The PARSIQ team already has a plan to recover the PRQ tokens stolen in the CoinMetro hack despite the fact that it was difficult but possible.
Impact on Uniswap Liquidity Providers
The difficulty was to save the Uniswap Liquidity Providers. Those Liquidity Providers were advised that they had to take off the liquidity from the decentralized crypto exchange. As a result, a large portion of the liquidity was taken away from the Uniswap exchange.
Accelerating the Migration to New Contract
PARSIQ was already planning to migrate their PRQ token to a new contract and release Epoch 2.0 token utility features, and the incident caused by yesterday’s hack accelerated the migration to the new contract.
Enhancements in the New Contract
The new contract will incorporate some of the planned features.