Threat Management, Network Security

Hackers steal nearly $500K from Enigma virtual currency platform’s ICO investors

Hackers on Sunday stole close to $500,000 in Ethereum from Enigma, a cryptocurrency trading platform provider, after compromising the company's digital assets in order to advertise a fraudulent crypto wallet address where users could buy tokens for an Initial Coin Offering.

To pull off this scam, the cyberthieves secretly accessed Enigma's website domain, Slack channel and mailing list, using these various channels to reach out to those interested in investing in Catalyst, Enigma's trading platform. While Enigma's ICO isn't until September, the company has been holding a pre-sale for accredited investors.

Citing Etherscan, TechCrunch reported that the culprits had already collected 1,492 in Ether coin, or approximately $494,170.68, by Monday morning (ET).

"At this time the Enigma team has retaken control of all compromised accounts, including the website," Enigma announced via Twitter on Monday. "Some pages will remain deactivated for the time being while the team works. Please continue to be vigilant and check out communications across ALL channels. Do not send any money or personal information to anyone." The company also said that it deactivated its Slack account and is instead now using Telegram to directly communicate with its community members.

The Enigma caper is very similar to a July 2017 incident in which cyberthieves made off with $7 million in Ethereum investments after hacking CoinDash, another virtual currency trading platform provider, during its ICO.

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Bradley Barth

As director of multimedia content strategy at CyberRisk Alliance, Bradley Barth develops content for online conferences, webcasts, podcasts video/multimedia projects — often serving as moderator or host. For nearly six years, he wrote and reported for SC Media as deputy editor and, before that, senior reporter. He was previously a program executive with the tech-focused PR firm Voxus. Past journalistic experience includes stints as business editor at Executive Technology, a staff writer at New York Sportscene and a freelance journalist covering travel and entertainment. In his spare time, Bradley also writes screenplays.

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