Hackers Steal $1.65 Million in NXT from BTER Exchange
BTER is reporting that 50m NXT, or roughly $1.65m at press time, has been stolen from its exchange following an attack on one of its hosting servers.
A developer representing the China-based digital currency exchange platform confirmed the news on the community information website NXT Forum, suggesting that the BTER team was considering rolling back the NXT block chain to recover the lost funds.
In a post to the community, developer ‘freeworm’ revealed the gravity of the situation for both the exchange and the NXT community, saying:
“It’s totally our fault and we are trying our best to cover all the loss. However, 50m nxt is huge for us, we cannot afford it at the moment.”
Freeworm continued his post by providing the address containing the stolen 51,670,000 NXT, and detailing how the exchange will try to help the NXT community recover its funds.
The BTER representative suggested that the exchange is exploring all options, including contacting the NXT development team in an effort to rollback the block chain, thereby restoring the ledger to its state before the theft occurred.
BTER also revealed the news on Twitter:
Someone hacked Bter’s NXT central account and stole 50m NXT. We are working with the dev for a plan. We will keep you updated.
— Bter.com Exchange (@btercom) August 15, 2014
Latest block chain rollback
The block chain rollback proposal, while still only in its early stages, would follow vericoin’s decision to reset its internal ledger in July. That decision occurred after 8m vericoins were lost in an attack on digital currency exchange MintPal.
While successfully avoiding the theft, the decision also sparked controversy within the altcoin community, with litecoin creator Charlie Lee speaking out against the decision and reassuring his community and its investors that it would not seek a similar solution in the event of large theft.
NXT was initially listed on BTER in January amid excitement about the then-new altcoin. The second-generation cryptocurrency uses a version of Proof of Stake (PoS) for its mining, awarding new coins to users for continuing to hold the assets.
Notably, vericoin cited its own PoS mining system as a key reason for its rollback. By not restoring the block chain to its previous state, many argued, the thief may have been rewarded for continuing to hold the confiscated funds.
At press time, many NXT Forum members were supportive of the idea of a rollback, though at least one member suggested that time was of the essence should the community look to pursue the fix.
Forum member ‘Come-from-Beyond’ suggested that the decision to revert NXT’s block chain would need to take place before 720 new blocks had been successfully processed by the community.
CoinDesk will continue to monitor this developing story.
Image via NXT
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