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Is it possible to hack yourself? It seems like something of an enigma; after all, you control the account or business in question, so you obviously know how to access it properly.
How Komodo Prevented Major Losses
Nevertheless, it appears hacking itself is exactly what one company has done. That company is known as the Komodo Platform. After learning that there was a backdoor open in its coding that could potentially give hackers access to its customers’ funds, the company ultimately “infiltrated” itself and moved its clients’ funds onto a different network, knowing that they would be saving their money from theft.
In many ways, it’s a noble move to make, but not everyone is taking the news lightly. The backdoor was discovered in what’s known as the Agama application, a digital wallet developed by the Komodo team. The company knew that several wallets had either already been compromised or were on the verge of being compromised. With little time to act, it moved funds as best as it could and as quickly as it could. These funds included $13 million in assorted bitcoins and Komodo tokens, and all potential hacks were ultimately thwarted.
This is good news in that nobody was hurt or stolen from or humiliated. However, some customers are complaining that their funds were tampered with or tackled without their permission and are demanding a better explanation from the Komodo team. The company has since announced that the coins are on a new platform and that customers have the chance to reclaim their coins. The move was not about stealing coins or moving them out of people’s control; it was about preventing a malicious actor from taking advantage of the company and its clientele.
Despite all the money it handles, Komodo is still being labeled a “cryptocurrency startup,” which means it’s still in the early stages of operating. In a statement, company executives announced why they did what they did, along with the full results of the “money move:”
After discovering the vulnerability, our cyber security team used the same exploit to gain control of a lot of affected seeds and secure the funds at risk. We were able to sweep around eight million in KMD and 96 BTC from the vulnerable wallets, which otherwise would have been easy pickings for an attacker. The safe KMD and BTC wallets are under the control of the Komodo team, and assets can be reclaimed by their owners. See our support page article for details.
The Right Move Forward?
Digital hacks and cyberattacks have become far too common in the crypto industry, and it’s nice to know that companies like Komodo are taking the necessary steps to prevent their customers from being affected. Despite its startup status, Komodo did what several larger, more established crypto-based companies couldn’t.