Good Cycle is allegedly victim of Ethereum transactions at $5.2 million fees and is Ponzi scheme
According to the Chinese crypto analytics firm Peckshield, the Korean cryptocurrency exchange Good Cycle is the latest victim of recent ridiculous Ethereum transactions with $ 5.2 million in fees. Elsewhere, many people were skeptical that Good Cycle was a Ponzi scheme and wanted to hide this story.
Analysis done by PeckShield on the recent two major ETH transfers. This may be a GasPrice ransomware attack launched by hackers targeting the exchange. @thomasheller_ @celiawan2 @bitentrepreneur @sallywang666 @tzhen https://t.co/ve16ImVQsl
— Minion@TokenInsight (@minionabct) June 12, 2020
Good Cycle is allegedly the victim of the recent absurd Ethereum transactions at a cost of $5.2 million in fees
According to Peckshield, this seems like a blackmail case because the two Ethereum transfers are the result of “Gas Price ransomware attacks” on a crypto exchange. Still, many wonders why Good Cycle was attacked but didn’t come out to sue and get their money back. And whether the hackers have been paid as no more weird transactions are made.
There are still many answers, but there are too many doubts here. According to the latest findings from Peckshield, during the monitoring of the exchange, they found that two ridiculous high charges were sent. It turns out to be a small P2P exchange named Good Cycle in South Korea, which, however, seems to be a Ponzi scheme project.
The exchange’s website shows it is a newly established P2P platform but has had 6,151 registered users with more than 63,187 ETH traded on it since its launch on May 25. The reason is probably that because the exchange advertises that users can enjoy high returns with only an initial investment of at least $ 100.
Update: We have identified the victim, a small P2P exchange in Korea called Good Cycle, which appears to be a Ponzi Scheme project. Our investigation found that their security is really lacking, e.g., using HTTP instead of HTTPS, and could be easily hacked.
— PeckShield Inc. (@peckshield) June 16, 2020
An exchange, with promises of a high rate of return, plus a low-security website, seemed like it could go bankrupt or run away at any time. Therefore, it is easy to understand why the exchange did not stop all activities after being hacked.
Losing $ 5 million, for a Ponzi scheme, is just unlucky. They are willing to swallow it and pretend nothing happens, to keep their plans active and get millions and even more money. The best strategy for this platform will now be to satisfy the hackers and cover up the incident.
“There was a large number of withdrawals, totaling over 5,000 ETH, made from the address within a day or two after the two unusual transactions. But soon, new capitals kept flowing in.”
After Peckshield’s findings were published, a whopping of 18,006 ETH was seen transferred out from the address, and there’s now only 1.34 ETH balance left.
The report also proposes the possibility that high fee transactions can be caused intentionally or unintentionally due to low-level bugs on the exchange’s developers. While whether it was an internal job or another robbery, the loss of user assets came true.
Because the fund’s owner was unable to issue a valid request, the entire ether miner team that received an unusual transaction for $ 2.4 million chose to distribute $ 2.4 million worth 10,668 ETH to the miners.
Peckshield said that they obtained more information and gave it to the Korean police. Therefore, all we need to do is wait and see where this situation will go!
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