In early 2023, the decentralized cryptocurrency exchange FixedFloat was hit by two major security breaches, resulting in significant losses. The first attack, in February, saw the theft of over $26 million worth of Bitcoin (BTC) and Ethereum (ETH). The second breach, in March, led to an additional loss of $2.8 million. FixedFloat has since shared the details of these incidents and the ongoing investigation with BeInCrypto.
FixedFloat Faces Two Major Hacks in 2023
The first hack occurred on the night of February 16-17, when a hacker exploited a security vulnerability in FixedFloat’s infrastructure. This external attack allowed the intruder to access several of the exchange’s functions. The second breach, on March 31, involved exploiting a vulnerability in a third-party service used by FixedFloat.
Recurring Threats from the Same Attacker
FixedFloat believes that the same hacker was behind both breaches, as the attacks originated from the same IP address. The hacker used multiple compromised servers to execute the attacks, likely avoiding storing evidence on their own devices and instead utilizing third-party servers.
Also Read: FixedFloat Exchange Suffers $26M Exploit: Bitcoin, Ether Affected
Security Gaps and Provider Issues
The hacker gained access to all of FixedFloat’s servers rented from the European web hosting provider Time4VPS. Despite FixedFloat’s efforts to change passwords and secure accounts, the hacker quickly regained control. The hacker even altered account emails to invalid addresses, preventing FixedFloat from receiving password change notifications and accessing their servers.
Interaction with Time4VPS Hosting
After the second breach, FixedFloat contacted Time4VPS, only to be met with inaction. The hosting provider’s support team was unresponsive, citing technicians’ days off. Even when action was promised, it was slow and ineffective. FixedFloat suspects either negligence or possible insider involvement from Time4VPS employees.
Impact on Customers
The hacks caused disruptions not only for FixedFloat but also for its users. FixedFloat temporarily suspended all exchanges to address the security breaches. However, as an automated, non-custodial exchange, FixedFloat does not store user funds, which helped mitigate customer losses. All pending orders were eventually fulfilled, and FixedFloat has since resumed operations.
Measures Taken Post-Hack
Following the hacks, FixedFloat underwent extensive maintenance, including a comprehensive security audit and implementation of additional security measures. These efforts included improving threat detection and prevention systems to better protect against future attacks.
Regaining User Trust
FixedFloat is actively communicating with its user base through social networks and forums to inform them about the changes and reassure them of the platform’s security. Emphasizing its non-custodial nature, FixedFloat highlights that user funds were never at risk. The exchange is now fully operational, with most cryptocurrencies available for exchange.
Recommendations for Other Platforms
- Conduct Regular Security Audits: Identify and address vulnerabilities promptly.
- Anticipate Provider Vulnerabilities: Have robust procedures to deal with third-party service breaches.
- Prioritize User Safety: Implement strict security protocols to protect user data and funds.