Italian Crypto Exchange Altsbit Shuts Down Following Hack

Italian crypto exchange Altsbit announced that it will shut down in May 2020 after losing about $70,000 in a hack on February 5.

February 12, 2020 | AtoZ Markets – Launched only a few months ago, an Italy-based crypto exchange Altsbit has been hacked and can’t afford to cover the losses, and will now have to shut down as a result.

Moreover, Altsbit platform doesn’t offer any clear information about the exchange or company on their website or social media page. However, they’ve made the announced exchange hacking on Twitter last Thursday of a breach in their systems, saying:

Cryptos kept in cold storage are safe

Altsbit has also posted an update on its website and says most of the hacked coins have been kept in cold storage. This means that partial refunds will be issued, even if the exchange doesn’t have the money to offer full compensation to its users.

Altsbit also provided an updated accounting of the cryptos stolen by the hackers:

  • Bitcoin (BTC): 6,929 lost out of 14,782 held
  • Ether (ETH): 23,210 lost out of 32,262
  • Pirate Chain (ARRR): 3,924,082 lost out of 9,619,754
  • Verus Coin (VRSC): 414,154 lost out of 852,726
  • Komodo (KMD): 1,066 lost out of 48,015

Altsbit publishes partial refund plan

Furthermore, the Altsbit website mentions that users need to apply for partial refunds. Now, the BTC and ETH stolen value about $70,000. However, this is what the exchange mentioned about refunds:

“Refunds will begin on February 10 2020 and end on May 8 2020, after this date it will no longer be possible to request a refund as the Altsbit platform will be terminated.”

Who hacked Altsbit crypto exchange?

In the meantime, the black-hat hackers from the group LulzSec claimed to have done the theft. This is exactly what they’ve tweeted:

Let’s not forget some LulzSec members have been arrested for the Sony Pictures hack from 2011.

Decentralization is the key

In a response to Altsbit tweet from Thursday, the famous decentralized exchange (DEX) Block DX tweeted:

Block DX’s tweet comes once again as a confirmation that decentralized is the way to go, as this provides more control over wallets.

What do you think abou Altsbit’s decision to shut down? Let us know in the comments section below.

Share Your Opinion, Write a Comment