Cyber Incident Victim: Trade.io
Date:
Oct 2018
Location:
United States of America
Summary
Trade.io experienced a security breach involving the unauthorized withdrawal of approximately 50 million TIO tokens (valued at $7.5 million) from a cold storage wallet linked to its liquidity reserves. The company confirmed the assets, held in bank safety deposit boxes, were corporate funds and not customer holdings, with no compromise detected in the physical storage. The incident triggered collaboration with exchanges Bancor and Kucoin to suspend TIO transactions and trading during the investigation. The organization proposed a token fork to invalidate the stolen assets and protect market value, emphasizing that regular platform operations remained unaffected.
| CIA Posture | Motives | Tactics, Techniques & Procedures |
|---|---|---|
| Available to members | 2 motives | 2 techniques |
| Threat Actors | Type | Location |
|---|---|---|
| 0 actors | Available to members | Available to members |
Description
On October 21, 2018, cryptocurrency exchange Trade.io suffered a security breach involving unauthorized withdrawals from its cold storage wallets. At approximately 08:40 EST, the company's security team detected a large transaction originating from an account linked to its cold storage infrastructure. Subsequent investigation using Etherscan records confirmed the theft of 50 million Trade tokens (TIO), valued at approximately $7.5 million based on trading prices the following day. The stolen funds represented company-owned reserves designated for liquidity pool operations during peak trading activity, with explicit confirmation that no user funds were compromised. Trade.io maintained these cold wallets in bank safety deposit boxes, with CEO Jim Preissler asserting no physical compromise of the deposit boxes themselves. Blockchain analysis revealed that 1.3 million of the stolen TIO tokens had been transferred to Bancor and Kucoin cryptocurrency exchanges shortly after the theft.
In response, Trade.io immediately collaborated with Bancor and Kucoin to disable all TIO deposits, withdrawals, and trading across their platforms. The company launched an investigation while maintaining normal exchange operations, emphasizing that the breach did not impact day-to-day trading activities. Preissler publicly disclosed the incident and announced consideration of a token fork to invalidate the stolen funds, aiming to protect the token's market value. He characterized the theft as a targeted attack against the company's movement, suggesting competitor involvement without providing evidentiary details. The incident exclusively affected Trade.io's proprietary liquidity reserves, with no reported collateral damage to customer assets or additional compromised systems beyond the cold wallet infrastructure.