News Cryptocurrency exchange Liquid hacked, hackers penetrated the company's network

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One of the world's largest cryptocurrency exchanges, Liquid, reported the attack last week. The company said that on November 13, 2020, an unknown attacker compromised the email accounts of several employees and eventually penetrated the company's internal network.

The administration of Liquid claims that the intrusion was discovered before the hacker managed to steal any funds. However, as the investigation showed, the attacker managed to steal information from the Liquid database, which stored the data of exchange users.

It has already been confirmed that data such as the real names of users, their home addresses, email addresses and passwords in encrypted form fell into the hands of the hacker. Since the company is still investigating the incident, it is not yet clear whether the attacker was able to steal user identity data, because all Liquid customers are required to submit such documents when making their first transaction.

"We do not believe that there is any direct threat to your accounts, as we use strong password encryption. However, we recommend that all Liquid customers change their passwords and 2FA credentials as soon as possible," writes the company's CEO, Mike Kayamori.

Liquid's statement says that the reason for the hack was the compromise of a domain name provider, whose employees fell victim to social engineering and gave the hacker control of the Liquid account. After gaining control of this account, the attacker changed the DNS records, directing incoming traffic to the server under his control. The company says that this way the attacker redirected employees to fake login pages and collected credentials from their work mailboxes. It then used this data to access employees ' email accounts and then move on to the internal Liquid infrastructure.

Unfortunately, such attacks are not uncommon. For example, in the summer of 2020, the Coincheck exchange was subjected to a similar compromise via DNS. Then users were redirected to fake login pages, and the attacker collected passwords from about 200 accounts. In 2018, a similar attack affected the myetherwallet wallet, and in 2017, the EtherDelta exchange.


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