Enigma Falls Prey to Hacking and $500K In Ethereum Stolen

Enigma Cryptocurrency

Enigma which is a popular cryptocurrency investing platform suffered from online hacking on August 21, 2017. The platform was severely compromised and approximately $500,000 of its virtual currency Ethereum was stolen. The hacking took place as the marketplace was planning for its 1st Token Sale which is also referred as Initial Coin Offering (ICO) for its Ethereum (ETH) currency.

A fake ETH address was set up by the hackers that sent bogus messages through emails and also via the “Official Slack Channel“, thereby offering pre-sale tokens before launching of the official Initial Coin Offering. A number of different investors regarded it as an attempt for a phishing scam, some failed to notice and mistakenly sent money to the compromised ETH wallet.

Initially, this cryptocurrency investor had sent out warning message on Twitter about the hacking and pleaded the investors to refrain from sending any amount to the wallet. Later on, Enigma would report that its online platform has been taken care of by gaining proper control of all its compromised accounts and addresses.

IMPT: Read the following info from Enigma re: recent scam attempt. Join our Telegram to speak with team admins: https://t.co/SSGIsJ2ZWe — Enigma Project (@EnigmaMPC) August 21, 2017

According to Enigma, not a single penny of the company’s money was stolen and same goes for the wallet addresses, password details or private keys. The company further said that none of its social networking channels like Facebook, Twitter or its official blog has been hacked. However, Enigma accepted that their official domain enigma.co has been compromised apart from Slack channel administrator and mailing list that enabled the cyber hackers to send genuine-looking emails to the user concerned from a legitimate domain email address of Enigma.


The company has apologized to all its users for their cyber attack and causing unwanted harm to the community. The company issued the following statement at a press meeting:

[We] will work hard to make this right. We’re actively investigating the scam attempt and the parties involved with multiple partners, including law enforcement, vigilant members of our community, other companies in our space, and exchanges.

Enigma wants all the investors who have lost their money because of the fraud to get in touch with the company. However, it is not clarified whether people would be able to get their lost money refunded. This is the 6th case that has come into the limelight in the past few months and also the 5th time that Ethereum has been targeted for online hacking.

The hackers in July this year successfully pulled off a similar attack on CoinDash’s ICO and stole $7.4 million. Soon after, hackers stole $30 million in ETH from multi-sig wallets that contain cryptocurrency.

According to some media reports, it is speculated that attack on Enigma happen after when the account of company’s CEO Guy Zyskind account was compromised. As per some reports, his account was made public because of a data breach that the cyber thugs used for accessing other accounts.

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