Crypto wallet provider Komodo effectively hacked itself to prevent fraudsters from accessing its users’ funds, the company confirmed in a blog post on June 5.
Security researchers had alerted the company to a vulnerability in its Agama wallet. Realizing that hackers could strike any moment, Komodo’s cybersecurity team decided to use the same exploit to move compromised crypto to safety.
Explaining to users what happened, Komodo said:
“We were able to sweep around 8 million KMD and 96 BTC from these vulnerable wallets, which otherwise would have been easy pickings for the attacker.”
Komodo’s actions mean that, at current market rates, funds worth $13 million were successfully shielded from a hack.
The crypto is now being held in two safe wallets, and owners are now being invited to reclaim their assets if their accounts have been swept. Those who may still have crypto in an Agama wallet are being urged to move all their funds to a new address as soon as possible.
Further details about the vulnerability are going to be published once Komodo has ensured that all funds have been secured.
Hacks are a continued threat in the crypto world. At the end of May, it emerged that the now-defunct New Zealand exchange Cryptopia owes $4.22 million to creditors after suffering an attack in mid-January.
Weeks earlier, hackers used phishing and viruses to withdraw 7,000 bitcoin (BTC) from compromised Binance hot wallets in a premeditated attack that went undetected by the exchange’s security systems.