Swiss-based digital currency exchange Shapeshift.io was shut down last week following a breach, which resulted in hackers emptying out the exchange’s hot wallet. In the aftermath of the incident, Shapeshift CEO Erik Voorhees assured clients that no funds were lost and that an investigation was underway.
In a statement posted today on the Shapeshift subreddit, Voorhees revealed that the incident was an inside job. According to his statement, an outside hacker was aided by a former employee of Shapeshift, “We are confident now that is is indeed the case.” said Voorhees.
Voorhees explained:
“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.”
The investigation is still ongoing and an expert from Ledger Labs – a blockchain consulting firm based in Toronto – has been brought in to assist with the discovery process. In his statement, Voorhees reiterated that trader’s funds were never at risk during the intrusion, “Again, no customer funds were ever at risk, by design.” he writes.
Voorhees also mentioned that a civil suit is currently ongoing and that a full criminal investigation of all the parties involved has been opened. While the release omitted any specifics such as the name of the former employee who aided the hacker, or what exploits were utilized in the intrusion, Voorhees said that “a more detailed post-mortem” will be release at a later date.
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
As Aptos and Tron prices take a recent downturn, the spotlight shifts to Rollblock, whose…
As the crypto markets roll into their most bullish time of year, we present three…
As the crypto market prepares for a major rally, experts believe that two top altcoins,…
Solana (SOL): A Strong Ecosystem Despite Volatility Solana (SOL) has been all over the place…
Cryptocurrency trends are keen on the forecast that was recently released by Llama 3.2 model…
A mysterious crypto whale, who previously invested 9,600 SOL into tokens $Pnut and $FRED, has…