The Sentinel Network developers accuse the HitBTC exchange of negligence, which led to the disclosure of the mnemonic phrase for accessing the wallet and theft of 40 million DVPNs from users.
Late last week by
reports developers of a decentralized P2P platform that supports the Sentinel dVPN application, 40 million DVPNs were stolen from the HitBTC cryptocurrency exchange. According to Sentinel, the theft was due to HitBTC disclosing a mnemonic phrase to access the dVPN wallet.
“This situation is beyond our control, HitBTC delayed the distribution of money among users and compromised its own mnemonic phrase,” the developers of Sentinel said.
Dear Community,
It has come to light that the CEX @hitbtc has exposed their mnemonic phrase resulting in 40million $ DVPN being stolen from its users.This is completely out of our control, HitBTC had delayed the distribution of funds to users and compromised their own mnemonic.
— Sentinel(@Sentinel_co) August 20, 2021
In a comment to CoinDesk, Srinivas Baride of Sentinel called the compromise of the mnemonic phrase “gross negligence” and hopes HitBTC will refund its users ‘money and overhaul its users’ money management system. ”
Sentinel Network allows users to sell internet traffic on a marketplace. Developers can use the Sentinel protocol built with the Cosmos SDK to build both public and private applications that leverage the Sentinel Network marketplace for dVPN applications.
HitBTC responded to accusations on Twitter and statedthat the Sentinel developers “are trying to absolve themselves of responsibility for the technological flaws of the project and deceive everyone.” HitBTC notes that it always swaps tokens “as recommended and on new devices” to prevent hacks.
According to the statement, the exchange has complied with “the highest security standards” from the first day of operation, and the Sentinel Network technology itself has a vulnerability that leads to the disclosure of mnemonic phrases to access DVPN wallets, and similar incidents have occurred before.
We a sorry to see @sentinel_co attempting to deflect responsibility for their technology flaws and deceiving everybody.
Let us make things clear for everyone: pic.twitter.com/Tg9J1xJsfw
— HitBTC (@hitbtc) August 21, 2021
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