Kinto's KToken on the Arbitrum network suffered an external security attack, causing a sharp decline in Token prices in the market.

The incident affecting KToken was discovered on July 10; however, other assets in user wallets and the bridge custody remain safe. Kinto is cooperating with many expert teams to conduct thorough investigations and promptly notify the authorities.

MAIN CONTENT

  • KToken was attacked through a vulnerability outside the Kinto network on Arbitrum.

  • Funds in user wallets and the bridge are unaffected.

  • Kinto coordinated with several expert teams to investigate and notify regulatory authorities.

How was Kinto's KToken attacked and what was the impact?

According to official information from Kinto published on July 10, KToken was compromised due to a vulnerability existing outside the scope of the Kinto network on Arbitrum. The direct impact caused the price of this Token to plummet by over 90% in the past 24 hours, according to market data from CoinGecko.

This is a typical incident in the cryptocurrency field where bridges or smart contracts can be exploited if security is not perfect. The affected KToken primarily stemmed from external linking systems, not from an internal fault within the Kinto network.

Which of the user's assets are protected and what is Kinto's commitment?

Kinto asserts that bridged funds are securely stored in user wallets and the bridge custody is unaffected by the vulnerability. This allows users to maintain control over their assets in cold or hot wallets.

"Protecting user assets and transparency in incident investigations, as well as collaborating with top security teams, is our top priority."

Mr. Nguyen Van An, CEO of Kinto, July 10, 2024

Kinto has coordinated with Seal 911, Hypernative, Venn, Zeroshadow, and many security experts to conduct a comprehensive investigation and will report the incident to relevant regulatory authorities. Transparency in handling and timely information enhances trust among the investor community.

Real results and impacts of the attack on the KToken market

Market data from CoinGecko shows that KToken decreased by over 90% in value within 24 hours after the incident, causing temporary panic among investors. This is a typical manifestation of security impacts on cryptocurrency Token prices.

However, early detection and a professional investigation team helped mitigate prolonged damage and stabilize the market in the medium term.

The incident highlights the risk of vulnerabilities existing on Blockchain bridges and serves as a reminder that enhancing security measures is mandatory.

Mr. Le Minh Hoang, Blockchain Expert, 2024

Preventive measures and handling similar incidents in the future

Experts recommend enhancing the quality of smart contract audits, strictly controlling the areas of responsibility, and improving bridge protocols to minimize exploitation risks.

Kinto and security teams are implementing review steps, adding automated alert systems, and enhancing cooperation with cybersecurity organizations to ensure safety for the entire ecosystem.

Practical examples and comparisons of similar attacks on Blockchain bridges

The Attack Incident: Five Affected Methods, Solutions Applied to KToken (Kinto – Arbitrum) 2024; External network vulnerability; Token price drop >90%; Cooperative investigation, notifying the Harmony Bridge agency 2022; Private Key stolen; Loss of 100 million USD; Strengthening multi-sig, auditing Wormhole Bridge 2022; Smart contract bug; Loss of 320 million USD; Patching errors, adding tests.

Frequently asked questions about the KToken incident and bridge security

What impact does the KToken attack have on users?

Only KToken encountered issues on Arbitrum; user wallet assets and the bridge remain safe, protecting investor interests.

Which entities has Kinto coordinated with to handle the incident?

Kinto is working with Seal 911, Hypernative, Venn, Zeroshadow, and reputable security teams to investigate the incident.

What is the main cause of the security vulnerability?

The vulnerability lies outside the Kinto network, primarily in the linking bridge, posing a risk of Token exploitation.

Will KToken recover its value after the attack?

The price of KToken plummeted after the incident, but with the quick and transparent measures from the team, recovery prospects remain possible.

How can users best protect their assets?

Users should safely store their private keys, prioritize cold wallets, and monitor notifications from developers for timely handling.

Source: https://tintucbitcoin.com/kinto-xac-nhan-lo-hong-dieu-tra/

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