Komodo carried out a hack on its own network to protect $13.67 million worth of tokens after learning about a security vulnerability. The crypto wallet and decentralized exchange operator learnt of the vulnerability on June 5 and quickly carried out the exercise in order to make sure user funds were not put at risk.
Millions of Dollars Saved
Komodo announced the action on a blog post the same day, detailing what had taken place. After learning about the potential vulnerability, which resided in the Agama wallet, their cyber security team used the same exploit to gain access to the affected wallet seeds and secure the at-risk funds, of which there were plenty – some eight million KMD ($13 million) and 96 BTC ($672,000) were moved from the wallets and into Komodo-controlled safe ones. They also advise anyone whose wallet was not swept, or who has coins other than KMD and BTC in them, to a new address, although the wallet itself is apparently still safe. The team also announced that further details on the hack would be provided once the matter was fully resolved.
Komodo’s Reputation Boost
Had the vulnerability been exploited, it would have resulted in one of the biggest hacks so far this year, with only the Bithumb, Binance, and potentially the Cryptopia hacks resulting in larger hauls. By being vigilant and taking action quickly, Komodo has not only saved their users from a potentially damaging loss of funds but increased their reputation at the same time. All blockchains will have flaws at some point, it’s how they are dealt with that marks the good from the bad, and Komodo clearly had a clear, effective plan in place for dealing with the inevitable.