How hacking itself helped this crypto wallet provider to save $13 million

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The cryptocurrency thefts are no joke. All around the world, especially where the more prominent crypto exchanges are situated, hackers will do anything to gain access to hot crypto wallets. Binance recently suffered from a major hack that was worth around $40 million of crypto.

Now, a new way to save “yourself” from hacking may be on the rise. Komodo, a crypto wallet provider, just hacked itself to prevent hackers from accessing users’ funds. The news comes directly from the company.

How the company got the alert is interesting. Security researchers actually informed Komodo that there was weak spot in the Agama wallet. After Komodo got the message, it eventually “shielded” itself by hacking its own vulnerable wallet and preventing the potential loss estimated at around $13 million worth of cryptocurrency.

This is what the company said:

We were able to sweep around 8 million KMD and 96 BTC from these vulnerable wallets, which otherwise would have been easy pickings for the attacker.

Those users whose wallets have been “swept” by Komodo can now reclaim their funds that have been transferred to safe wallets.

While most large cryptocurrency exchanges do have insurance for any potential hack, (just as the one Binance had to provide for the “victims” of the $40-million attack), most of the small exchanges still are not prepared to effectively shield themselves from crypto hackers.

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