Bitcoin Daily: Komodo Blockchain Platform Hacked Itself To Protect Users’ Crypto; ING Gets On Board With USC Blockchain Project

Blockchain startup Komodo Platform resorted to hacking its users’ wallets in order to save $13 million in bitcoin and other cryptocurrency from being stolen.

The move happened after security researchers warned the firm about a “back door” in Agama, one of its wallet apps, that would have enabled hackers to steal all of the digital assets held in the app. As a result, the Komodo team used the same back door to extract users’ funds  and move them to a safe location.

“After discovering the vulnerability, our cybersecurity team used the same exploit to gain control of a lot of affected seeds and secure the funds at risk,” the Komodo team said yesterday in a security alert.

In other news, ING has announced it is partnering with other global banks to create a digital coin that can be used to instantly settle international money transfers — a new step in the development of the utility settlement coin (USC) project.

“We see that tokenization of assets and the use of distributed ledger technology offer huge potential for our industry,” Annerie Vreugdenhil, head of Wholesale Banking Innovation at ING, said in a press release.

“With Fnality we are setting the standard in the financial market infrastructure of tomorrow. Our collective goal is to make settlement processes as easy as possible and we are very excited to be part of this industry-wide effort,” she added.

Cybersecurity researchers discovered a fake cryptocurrency trading website that has helped hackers steal more than $260,000 in crypto.

The site imitates the Cryptohopper trading platform and distributes malware that could steal personal information, hijack a clipboard, and crypto-jack a system, according to Bleeping Computer.

And five countries are working together to fight crypto-related crimes, including tax fraud.

The team, made up of the U.S., Australia, Britain, Canada, and the Netherlands, was formed by the U.S. Internal Revenue Service and already has 60 open investigations. It is now considering adding another 50 to its list.

“We’re seeing the use of cryptocurrencies in ways that we haven’t seen before,” Australian Taxation Office Deputy Commissioner Will Day told reporters, according to the Sydney Morning Herald. “At the Australian level, there is definitely legitimate use for investment in cryptocurrencies, but we’re also seeing the use of them to facilitate tax crimes.”