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The Possibility of ICO Refunds

July 30, 2018

 

Contrary to the informal industry standard of rarely offering true compensation in the face of Crypto hacks, one particular Blockchain project is taking full responsibility for a massive hack of the wallet that held the majority of its Crypto tokens.

 

A Blockchain firm called KickICO was hacked to the tune of 70 million of its native tokens after its major wallet’s private key was reportedly compromised. In addition to this, certain users’ wallets were also compromised, according to a blog post by the company on the subject.

 

The CEO of the firm, Anti Danilevski, was quoted in the same blog post as saying that the firm did not know about the hack until users complained that they could not find around $800,000 worth of KICK tokens.

 

Strangely enough, to run the hack successfully, the hackers seemingly used Bancor including a good knowledge of how the Kick token(KICK) smart contract was connected with Bancor, to destroy tokens at 40 specific wallet addresses and then re-create them at 40 new addresses.

 

Contrary to this claim by KickICO, however, Bancor released a statement to the effect that the blame for the faulty nature of KickCoin’s wallet’s private key lies solely with KickCoin.

 

Even, so, Danilevski stood firm on the notion that KickICO will refund all of the lost tokens to its users over time, in good faith.

 

Whether or not this means that they will actually follow through on this promise remains to be seen.

 

Furthermore, since such a pattern of accountability has not yet been established in the space yet beyond outliers like Binance, this is no direct indication that others will do the same.

 

However everything turns out, it could definitely be concluded that a good chance exists for change coming in some form. Specifically, all of this bodes well for the space in that it might encourage the industry as a whole to adopt standards for network wide refunds in the face of hacks that were clearly the fault of the creators, but not of the users.

 

 

 

By: BGN Editorial Staff

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