Former Canaan Chairman Discloses Insider Hack of Crypto Project
Jack Kong, former chairman of China-based computer hardware manufacturer Canaan, recently revealed that a cryptocurrency project he invested in was hacked by an insider. The hacker, who reportedly fled to Thailand, was arrested and returned to China within 48 hours with the help of Chinese police.
“The insider hacker has been lurking for a long time, secretly photographing passwords and changing hardware wallets.”
Kong initially believed that the hack may have been a result of phishing, but after another breach was reported from “another large wallet,” the project team began investigating the possibility of an insider hack. They filed a case with the police, and with the assistance of Bitmart and Slow Mist, issued substantiation letters to different platforms.
“The suspect tried to cash out some Thai baht through a website, thinking that no one would be able to find out. The suspect has been detained by the Chinese police in the mainland.”
An Insider Threat
Kong emphasized the importance of considering both internal and external crime when investigating thefts. He warned hackers that stolen funds can be tracked as long as they are being cashed out. Kong suggested that crypto firms establish safety education programs, including real theft simulation training and prevention.
“When it comes to security education, many people have no personal experience.”
He proposed the creation of a “security DAO” where capable institutions and individuals can collaborate to provide education, training, and tracing services. Kong also confirmed that nearly 100% of the stolen funds were recovered, with only a small portion and GAS lost during the coin laundering process remaining unrecovered.
Safety Education for Users
In conclusion, Kong’s disclosure of the insider hack highlights the need for robust security measures in the cryptocurrency industry. It serves as a reminder to companies to be vigilant against both internal and external threats. Establishing safety education programs can empower users to protect their assets and prevent future breaches. Collaboration among capable institutions and individuals can expedite investigations and asset recovery. By prioritizing security, the crypto industry can work towards building a more resilient ecosystem.
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