Hodl Hodl launches liquidation of select contracts amid potential security concerns

The P2P platform Hodl Hodl, which facilitates the buying and selling of Bitcoin, said there were potential security issues, and has launched a migration and liquidation of contracts.

During a recent audit, the platform found that some user passwords may have been compromised, Hodl Hodl representatives said.

«We began migrating/liquidating user contracts to prevent potential loss of funds», the blog said.

In a conversation with ForkLog, Hodl Hodl CEO Max Kaidun stressed that this concerns only certain contracts.

On Twitter the company said it would initiate liquidation of contracts that are still in execution but deemed ‘high-risk’.

You can always recreate the contract on the same terms after the Liquidation with no fees.

Please check your contract’s chat for more details.

— Hodl Hodl (@hodlhodl) August 1, 2021

Users were alarmed by letters from the platform that urged them to close contracts within two hours in a very scammy style.

Guys what is going on with @hodlhodl ?

We are getting mail with a very scammy style, where they are pushing us to close contracts in the next 2 hours (!!) does somebody know what’s going on?

Have they been compromised?@stephanlivera i tag you cause i knew of them thx to you

— 🌋 WARTIME ⛏️ dende.hodl | upgrade to 0.21.1 🟩 (@HodlBits) August 1, 2021

Hodl Hodl apologized for the poorly worded communications and confirmed that the letters were genuine.

The platform continues to study the issue and works with external auditors. Hodl Hodl’s CEO told ForkLog that after obtaining a full picture of the incident, the team will publish details in the blog.

Last year, Hodl Hodl became the first non-custodial P2P platform available in a mobile app, and launched the Lend at Hodl Hodl platform for Bitcoin-backed loans.

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