Crypto Trading App Taylor Hacked of Virtually All Its Treasury

Crypto Trading App Taylor Hacked of Virtually All Its Treasury

In the wake of a dreadful hacking incident, cryptocurrency startup Taylor, a crypto trading platform play, claims to have lost every penny. Apparently, unidentified hackers absconded after stealing $1.5 million USD of digital currencies. Taylor was expected to release its trading app in the coming weeks, but now the company is  mulling over another ICO to spring back quickly.

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‘A Dark Day’

Taylor, the smart-trading platform-to-be, announced the unpleasant incident on its Medium blogThe development team claims that hackers stole 2,578 ether (ETH) and 659,000 TAY tokens, draining everything the company had left over through an Initial Coin Offering in February. The stolen loot amounts to over $1.5 million.

Following the heist, the only digital assets left safe and sound were the ones not left in the platform’s general fund. The company stated:

“The only tokens that were not stolen are the ones from the Founders’ and Advisors’ pools because there’s a vesting contract making them inaccessible for now.”

Now, Taylor suspects that the agent or agents responsible have similar traits as the attackers responsible for the CypheriumChain hack, wherein 17,000 ETH were similarly stolen. As part of the investigation, Taylor trailed the stolen ether leading them to discover it in the wallet of the hacker behind the CypheriumChain heist.  

As for the stolen TAY tokens, Taylor team have notified IDEX Exchange, a decentralized Ethereum-based exchange, to delist the digital coin after learning hackers attempted to dump the stolen tokens on said exchange. 

“Even though we took the duly security measures to prevent this kinds of situation, we could not stop what seems to have been a highly advanced and coordinated attack,” the Taylor team announced. “So for now we have more questions than answers”

Another ICO in the Cards?

According to the team’s roadmap, Taylor was expected to launch a beta version of their trading app this month. However, the entire hacking incident has raised some skepticism. Many crypto enthusiasts have alleged the entire hacking episode to be a part of the exit scam, however, the company in its official announcement have reassured users and said to expect delayed progress.

Despite the controversies, in an open letter Taylor CEO Fabio Seixas proposes a “survival fund token sale” of the 2,000,000 unsold tokens from the last fundraising effort. Sexias proclaims to only have $25,000 in the company treasurey following the heist.

He wrote:

“The goal for both funding options is to raise only enough to have a small and lean team to work for 12 months, paying for the basic operational and infrastructure costs. This time frame should be enough to release the app, acquire the first users, start gaining some traction and generating revenue.”

The emergency token sale would ensure that daily operations are not hindered, and in the meantime, a possible revenue-generating product could be finalized. For now, Taylor is in deep waters and sailing past the chop seems impossible.

Desperate times call for desperate measures, as they say.

What’s your take? Do you think hackers are preying on smaller crypto projects? Let us know where you think the crypto space goes from here. Sound off in the comments below. 

Images via Taylor, IBTimes UK

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