{"id":48128,"date":"2021-08-23T12:57:01","date_gmt":"2021-08-23T09:57:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=48128"},"modified":"2025-09-02T00:42:14","modified_gmt":"2025-09-01T21:42:14","slug":"blockchain-project-accuses-hitbtc-of-losing-40-million-tokens","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/blockchain-project-accuses-hitbtc-of-losing-40-million-tokens\/","title":{"rendered":"Blockchain project accuses HitBTC of losing 40 million tokens"},"content":{"rendered":"<p>An unknown party moved 40 million DVPN tokens off HitBTC due to the exchange&#8217;s error, according to the token issuer Sentinel Network. The project is developing a P2P marketplace for decentralized applications and resources.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Dear Community,<br \/>It has come to light that the CEX <a href=\\\"https:\/\/twitter.com\/hitbtc?ref_src=twsrc%5Etfw\\\">@hitbtc<\/a> has exposed their mnemonic phrase resulting in 40million <a href=\\\"https:\/\/twitter.com\/search?q=%24DVPN&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$DVPN<\/a> being stolen from its users. <\/p>\n<p>This is completely out of our control, HitBTC had delayed the distribution of funds to users and compromised their own mnemonic.<\/p>\n<p>\u2014 Sentinel \u269b\ufe0f (@Sentinel_co) <a href=\\\"https:\/\/twitter.com\/Sentinel_co\/status\/1428802575625826308?ref_src=twsrc%5Etfw\\\">August 20, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n\\n\\n<\/p>\n<p>According to the project developers, the theft was possible because the exchange disclosed the mnemonic phrase used to recover access to the crypto wallet.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\\&#8221;This is completely out of our control; HitBTC delayed the distribution of funds among users and compromised their own mnemonic phrase,\\&#8221; wrote the Sentinel Network team.<\/p>\n<\/blockquote>\n<p>\\n\\n\\n\\n<\/p>\n<p>The project expressed hope that the exchange would compensate users for the losses.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\\&#8221;We would like to assure users that your own DVPN are safe. The weak link is HitBTC, which informed us of the breach an hour after it,\\&#8221; the team added.<\/p>\n<\/blockquote>\n<p>\\n\\n\\n\\n<\/p>\n<p>HitBTC <a href=\\\"https:\/\/publish.twitter.com\/?query=https%3A%2F%2Ftwitter.com%2Fhitbtc%2Fstatus%2F1429047764772655104&#038;widget=Tweet\\\">\u0437\u0430\u044f\u0432\u0438\u043b\u0430<\/a>, that the incident was caused by a vulnerability on Sentinel Network&#8217;s side:<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\\&#8221;Unfortunately, we see that Sentinel is trying to shift responsibility for its technological shortcomings and deceive everyone.\\&#8221;<\/p>\n<\/blockquote>\n<p>\\n\\n\\n\\n<\/p>\n<p>The exchange urged not to mislead people, since the mnemonic phrase was created for the token swap procedure in the project&#8217;s wallet, and cited several examples of DVPN theft from users. In all cases, this occurred because the mnemonic was published in the transaction&#8217;s note field.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>According to Mintscan.io, the phrase was published in a transaction to its own one-DVPN address. It is presumed that HitBTC staff were testing the transfer of funds ahead of the swap.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<figure class=\\\"wp-block-image\\\"><img decoding=\\\"async\\\" src=\\\"https:\/\/lh3.googleusercontent.com\/sK851bMLtY_6v5btBvxixnskFRRG-JGxa0IdyO_MPZ5cgz_5PVc9HgRew3kLLTywbuAz6HWMdNVxf7t8quYG6A1zBunkkhsvklbt5tolXrJPrX0cXaX6dDJoahrykHX14K_aJGBj\\\" alt=\\\"Blockchain project accuses HitBTC of losing 40 million tokens\\\"\/><figcaption>Data: Mintscan.io.<\/figcaption><\/figure>\n<p>\\n\\n\\n\\n<\/p>\n<p>Immediately after the incident, the DVPN price fell by more than 18% \u2014 from $0.0259 to $0.0212. At the time of writing the token trades around $0.0253 (<a href=\\\"https:\/\/www.coingecko.com\/en\/coins\/sentinel\\\">CoinGecko<\/a>).<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Earlier, criminals stole $140,000 in Bitcoin from a HitBTC client, posing as the exchange&#8217;s support service. A court sentenced the perpetrators to two years in prison.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Subscribe to ForkLog news on VK.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An unknown party moved 40 million DVPN tokens off HitBTC due to the exchange&#8217;s error, according to the Sentinel Network issuer. The project is developing a P2P marketplace for decentralized applications and resources.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,1154,2238],"class_list":["post-48128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-crimes","tag-hitbtc"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/48128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=48128"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/48128\/revisions"}],"predecessor-version":[{"id":48129,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/48128\/revisions\/48129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=48128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=48128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=48128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}