Developers of HodlHodl, a non-custodial P2P Bitcoin trading platform, said some users’ payment passwords could have been compromised.
According to an article on the platform’s blog, the developers had to forcibly close some user contracts to prevent losing money due to a security issue.
“Unfortunately, our recent internal and external audits revealed that some of the user’s payment passwords may have been compromised,” the HodlHodl team wrote in a blog post. “This has affected a limited number of contracts, but we are taking proactive steps to ensure everyone is safe.”
The team is investigating the issue and working to securely transfer tokens from potentially compromised contracts. The developers of HodlHodl declined to comment on the situation, but promised to publish a report as soon as the problems are investigated and fixed.
“We have contacted external auditors and conduct external and internal audits on a daily basis.”
According to records on Twitter of one of the users, the problem concerns the HodlHodl lending platform, which was launched in October 2020. User also reportedthat on August 2nd the HodlHodl website was down for a while. Answering questions on Twitter, Hodl Hodl Account Administrator statedthat the platform did not liquidate all contracts, but only a few.
Warning. Something strange is happening over at hodl hodl.
Don’t give anyone any information (e.g. don’t give your email to someone in dm’s). Be very careful when closing out existing contracts or making new ones at this time.
— 6102 (@6102bitcoin) August 1, 2021
HodlHodl is a non-custodial P2P trading platform. The platform does not store users’ money, but gives them the opportunity to buy, sell, borrow and borrow BTC from each other automatically. Users block BTC in multi-signature escrow wallets and use their personal payment passwords to withdraw coins from them. Some of these passwords may have been compromised, according to HodlHodl.
August 1st user HodlBits expressed tweeted concerns about HodlHodl’s work, stating that he had received an email from the company “urging us to close contracts in the next two hours,” and the writing style seemed odd to him. Official HodlHodl Twitter Account confirmedthat the emails are genuine and were sent by the company.
Later that day, HodlHodl tweeted that the platform had begun to forcefully liquidate “contracts that are still in progress but are considered high risk.” This is to keep your money safe. To complete the liquidation process, we will need you to also sign the liquidation. ”
The next day, the HodlHodl developers posted a clarification on their blog and apologized for not communicating well with users. The team also posted the PGP key on the website and blog to prove that HodlHodl’s social media accounts were not hacked.
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