Japanese Syndicate Wallet Hacked, $10 Million Reported Missing

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Japanese Syndicate Wallet Hacked, $10 Million Reported Missing


On the 1st of June, 2018, many had gathered for the Shopin’s Token Generation Event. It had used a hot MyEtherWallet which was a storage wallet. The wallet contained a huge amount of different tokens, which included 61 million Shopin Tokens. This event among many, had also involved a Japanese Syndicate.

In some time, after the allotment of the participant tokens were received, the Japanese Syndicate member’s wallet was hacked and which allegedly got robbed.
The Syndicate had a loss of more than $10 million USD which included various tokens or cryptocurrencies like Level Up, Ethereum, Orbs as well as Shopin Tokens.

A representative of the platform stated, “On Wednesday, May 30, 2018, Shopin distributed tokens to one of its leading partners in Japan, who runs a large Japanese syndicate. A few days later, her wallet was hacked, as she was not storing it in cold storage or in a hardware wallet. This is a very sad moment; the Shopin team has a lot of empathy for the situation and the wonderful Japanese people who have participated. We are investigating what can be done to help with the situation.”

Who is Shopin?

Shopin was the first ever universal shopper profile. It not only delivers the most personal shopping experience on any retailer website, app or store, but it also uses blockchain and Artificial Intelligence (AI). Shopin’s vision is to create a more sustainable retail economy where retailers become stronger by working together with their consumers.

It’s voted as “Best ICO” at the North American Bitcoin Conference 2018, “Best ICO and Startup” by CoinAgenda Global, and the #5 “Top ICO” at Davos d10e,

After the theft, Shopin filed a complaint immediately to the Japan police and also pleaded to the hacker with a reward to return the fund. It has also been working with Blockseer to track cryptocurrency transactions.

Words of Shopin’s CEO 

Shopin’s CEO, Eran Eyal said, “Usually, this is done via prima-block, which enables the participants to pool their funds into a smart contract which handles all the parameters and distribution. This was a methodology that we urged the Japanese syndicate head to use, but it was unheeded. Instead, the syndicate lead decided to store the funds and tokens they received in a wallet like MyEtherWallet. At one stage, we even recommended other wallets for receiving the tokens and sent instructional videos. The only things that could have brought this to bear, in our minds, is that someone had access to the syndicate lead’s passwords, devices or mnemonic key. The actual vulnerability is the negligence of keeping this all in a hot wallet. Our tokens were distributed by an airtight smart contract and was audited by three external top-of-class firms. From a legal standpoint, Shopin’s responsibilities ended when we delivered the tokens to the syndicate and they acknowledged successful reception. However, the moral and ethical ramifications are the real issues. We are sparing no effort in examining every solution possible.”

 

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