Cyber Incident Victim: Altsbit
Date:
Feb 2020
Location:
Italy
Summary
The cryptocurrency exchange Altsbit suffered a hack resulting in the theft of nearly all hot wallet funds, including significant amounts of Komodo and Verus coins totaling approximately $27,000, while cold storage assets remained secure. Following the breach, the Italian platform announced an investigation into the incident but faced criticism from users questioning its security measures, with some alleging potential exit scam involvement.
| CIA Posture | Motives | Tactics, Techniques & Procedures |
|---|---|---|
| Available to members | 2 motives | 1 technique |
| Threat Actors | Type | Location |
|---|---|---|
| 0 actors | Available to members | Available to members |
Description
On February 6, 2020, Italian cryptocurrency exchange Altsbit announced via Twitter that it had suffered a significant security breach resulting in the theft of "almost all funds" from its hot wallets. The attack occurred overnight, with hackers stealing cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Pirate Chain (ARRR), and Verus Coin (VRSC). Specific quantities confirmed stolen included 1,066 Komodo (KMD) tokens and 283,375 Verus (VRSC) coins, representing a combined value of approximately $27,000 at the time. The exchange clarified that funds held in cold storage remained secure and unaffected by the breach. Altsbit's initial statement, posted at 2:24 a.m. local time, provided no technical details about the attack vector or how unauthorized access was achieved. The announcement triggered immediate user concerns about asset security and platform reliability.
Following the disclosure, Altsbit initiated an internal investigation focused on quantifying losses and analyzing technical aspects of the breach. The exchange committed to providing additional details but did not specify a timeline for resolution or fund recovery. Public reaction on social media included criticism of Altsbit's security measures, with users like Tim Tayshum questioning the adequacy of their protocols. Some community members speculated about the possibility of an exit scam rather than a legitimate hack, though no evidence supported these claims. The incident disrupted normal exchange operations, though the extent of service interruptions was not detailed in public communications. Altsbit's limited transparency regarding protective measures for remaining assets or compensation plans for affected users contributed to ongoing uncertainty about the platform's viability post-incident.