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Crypto Exchange Changelly Confirms It Can Steal Users’ Monero (XMR)

Changelly Can Withhold XMR If KYC Isn’t Completed 

Privacy coins, such as Monero (XMR), ZCash (ZEC), Horizen (ZEN), are often the topic of controversy within the cryptocurrency community, as some naysayers claim that these assets directly enable money laundering, terrorist financing and the like. Although this may be true in rare, fringe cases, these critics fail to remember that a good majority of privacy coin-enabled transactions are likely made with good intentions.

Regardless, Changelly, a Prague-based ‘instant’ cryptocurrency exchange, has recently sought to restrict

Monero (XMR) trading on its platform, even though it has natively supported the privacy coin for months, if not years.

For individuals looking for near-instant crypto-to-crypto transactions, Changelly is undoubtedly one of the best places to go-to, but for those looking to trade their assets into Monero specifically, using the service may pose a bigger problem. Over the past few months, a multitude of users have taken to Reddit to claim that Changelly withheld hundreds of Monero due to “high risk” KYC concerns.

As reported by The Next Web, a Changelly representative has since confirmed that the service is allowed to have a finger over the trigger, which allows the exchange to withhold “suspicious transactions” that involve Monero. He/she wrote:

To all Monero community, our risk management system doesn’t mark all transactions out of the blue… Monero is the crypto that hides a sender and recipient thus making transactions untraceable. This [is] a reason why big amounts of other currency got to be checked [sic] before [it’s] converted to XMR.

The spokesperson went on to add that Changelly does not inherently hate users who use XMR but will restrict transactions in accordance with its rather strict KYC procedure, as fears of money laundering run rampant within global regulatory bodies. The company representative also added that as soon as the proper KYC protocol is fulfilled, the funds will immediately be released to the predesignated consumer-owned address, and the said user would even be whitelisted to avoid such an occurrence from happening again.

On the other hand, however, it was unfortunately revealed that if the submitted KYC documents are not up to par, Changelly retains to right to keep all of the withheld cryptocurrencies for an undisclosed period of time.

Regulators And Privacy Cryptos — Not A Good Combo

As reported by Ethereum World News in mid-May, Japan has taken a risk-averse stance towards privacy cryptocurrencies, with regulators within the country requiring local exchanges to delist Monero, Dash, ZCash, and other anonymous blockchain-backed assets or face delicensing.

For now, Japan is the only ‘big name’ country to have made a move against privacy-centric digital assets, but many believe that it won’t stay that way for long, with pessimists speculating that countries around the globe will eventually make their move against this subindustry.

Photo by Marius Ciutacu on Unsplash
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Decentralized Crypto Exchange Bancor Reports ‘Security Breach,’ Remains Down for ‘Maintenance’

Decentralized cryptocurrency platform Bancor halted operations Monday, July 9, as it investigates what it calls a “security breach,” reportedly involving over $12 mln.

A Twitter post confirmed the breach and Bancor’s halted operations, which the platform says is specifically to allow investigative work prior to a full statement being released “shortly.”

“This morning (CEST) Bancor experienced a security breach. No user wallets were compromised,” the tweet reads, continuing:

“To complete the investigation, we have moved to maintenance and will be releasing a more detailed report shortly. We look forward to being back online as soon as possible.”

As of press time Monday, the platform’s homepage redirects to a maintenance message, with provision for a return to normal service within “minutes” rather than hours or longer.

Bancor

User funds remain intact due to Bancor not holding any cryptocurrency in hot wallets or otherwise on their behalf.

The malicious party exchanged some of the tokens via instant conversion service Changelly, the latter told Cointelegraph.

“Part of the stolen tokens were exchanged via Changelly,” CEO Konstantin Gladych told Cointelegraph in a statement, adding:

“Afterwards the tokens were frozen by the Bancor Foundation in our contract. Now we are helping track the stolen funds.”

Sources familiar with the matter also told Cointelegraph that the stolen tokens included Bancor’s native token BNT –– which the platform was able to freeze –– as well as around 25,000 Ethereum (ETH) ($12.2 mln) and 300,000 Pundi X (NPXS) ($1,200), which Bancor is in the process of tracking, reportedly with the help of other exchanges.

Bancor became well known after raising $153 mln in ETH in three hours during its Initial Coin Offering (ICO) in 2017, an unprecedented amount at the time.

Its decentralized structure has contributed to its security record, while major hacks have continued to rock centralized cryptocurrency exchanges – most notably Coincheck – throughout this year.

Vitalik Buterin, co-founder of Ethereum, delivered heavy criticism of centralized exchanges last week, saying he “hopes they burn in Hell.”

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Crypto Exchanges Pause Services Over Contract Bugs

As many as a dozen or more ethereum-based ERC-20 smart contracts have been found to contain bugs that let attackers create as many tokens as they want.

While the bugs – first identified on April 22 and April 24, respectively, in a pair of posts published by a group called Coinmonks – aren’t tied to the ERC-20 standard itself, the issues prompted a number of exchanges to suspend ERC-20 tokens as they investigate. Those exchanges included OKEx, PoloniexChangelly, Quoine and HitBTC.

Huobi.Pro separately announced on April 25 that it had suspended all coins, but has since limited that to ERC-20-based tokens. As of press time, Poloniex has moved to reinstate services for ERC-20 tokens.

In one example, an attacker transferred 57,896,044,618,658,100,000,000,000,000,000,000,000,000,000,000,000,000,000,000.792003956564819968 BeautyChain Tokens – as shown by transaction data on Etherscan – on April 22, a development that prompted the initial investigation into the issue.

“Our study shows that such transfer comes from an “in-the-wild” attack that exploits a previously unknown vulnerability in the contract. For elaboration, we call this particular vulnerability batchOverflow,” Coinmonks’ post on the 22nd explained. “We point out that batchOverflow is essentially a classic integer overflow issue.”

Countless coins

The batchOverflow post outlines how the batchTransfer function in a contract has a maximum number of tokens that can be sent in a transaction, adding that the value of the tokens being transferred must be less than the total number of tokens that were generated. However, the “_value” parameter – one of the two that determine the total number of tokens – can be manipulated, which would then change another variable, resulting in an attacker being able to create as many tokens as they’d like.

Further, the attacker can bypass the barriers in the contract which would normally ensure that a reasonable number of tokens are being transferred.

“With amount zeroed, an attacker can then pass the sanity checks in lines 258-259 and make the subtraction in line 261 irrelevant,” the post explained, noting:

“Finally, here comes the interesting part: as shown in lines 262-265, the balance of the two receivers would be added by the extremely large _value without costing a dime in the the attacker’s pocket!”

While initial reports indicated all ERC-20 tokens may be impacted, the “batchTransfer” function is not part of the token standard.

The Medium post did not list the vulnerable projects, though it did note that the BeautyChain was the first project they discovered. In a sign of the seriousness of that bug, OKEx said on April 24 that it was rolling back trades on the BeautyChain Token.

The exchange also announced around that time that in light of the bugs, it was suspending desposits and withdrawals a project called SmartMesh trading due to “abnormal trading activities.” Coinmonks and author Ranimes noted that this was possibly due to the proxyOverflow bug, which, like batchOverflow, is a classic integer overflow problem. Certain variables can be manipulated to spontaneously generate large amounts of tokens.

One Twitter user noted that an attacker created $5 octodecillion in SmartMesh tokens.

As one of the posts noted, the danger exists that someone can use a vulnerable cryptocurrency to manipulate prices in their favor by trading with bitcoin, ether or another trading pair.

Representatives for the BeautyChain and SmartMesh projects did not immediately respond to requests for comment. However, a statement on BeautyChain’s website acknowledges the bug and states that trading will resume at an undetermined point in the future.

Similarly, SmartMesh announced that it would take steps to prevent price manipulation, saying:

“The SmartMesh Foundation will take the equivalent amount of SMT to the counterfeit amount and destroy it to make up for the losses caused, and keep the total supply of SMT at the value of 3,141,592,653.”

Image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Life-altering Essential Cryptocurrency Trading Websites for Beginners

Every day more people are paying attention to the idea of being a part of the crypto area, apprehending the benefits it’s bringing to the society. Some enjoy being a member on this sphere for the technology part, while some on the other hand, like to be a part of the cryptoland because great money are involved and expected to be earned.

In every sphere of life when you get involved on something new, you must always remember that you are considered as a beginner even though you expect faster results on a respective field. As you make a fresh start, with the reliable sources, school education, or most importantly self-education, you – as a new individual on a specific area – will succeed.

Along with these lines, Ethereumworldnews.com wants to give you the first hand, also is and wants be your one-stop solution for all crypto-related misunderstandings if you are just at the first steps of entering the dynamic journey in the cryptosphere and likewise guidance you to become a professional at cryptocurrency industry.

Ethereumworldnews.com has been here for over a year and we acquired to reach more than 3 million people like you – the ones that desire to be experts on the crypto area. Consequently, I am here again today to help you obtain extended knowledge, and tell you some of the best crypto trading website/exchanges for beginners.

Read also: The Top Cryptocurrency Trading Tools You Must Try

Even though I was a complete novice when I started, it was pretty clear to me what I wanted before choosing which cryptocurrency trading website/exchange I have to use. Some of them were:

  • Ease of usage and UI
  • Security of funds
  • Past performance
  • Development team
  • Geographical Operations Map

Currently, the ones mentioned above still seem to be applicable on the same way.

Considering this guideline, I will show you some of the best websites to buy and trade your cryptocurrencies.

5 Best Crypto-Trading Websites for Beginners:

1. Binance

binance exchange

One of the trading-websites that has been ruling the crypto industry for many months now, is Binance.

This exchange fits well with the new members entering the journey of crypto market. The company has reached to gain a lot of popularity due to its low trading fees. They have an inbuilt option in their UI to switch between the two modes, a feature that makes their UI very easily approachable.

Furthermore, you will never have problems with situations of market fluidity while using Binance because it persistently ranks in top 5 exchanges on CMC by volume.

Additionally, if you choose to use their native BNB tokens while trading, you will be offered with a discount up to 50% in your trading fees, which is considered as a big amount if you are aiming to be a regular crypto trader. If you start as early as possible via BNB, the more benefits of saving you will receive. (Buy BNB Tokens Here)

Also another advantage is that they have the most advanced, easily accessible and usable mobile apps for trading cryptocurrencies on Android as well as iOS.

  • If you choose to trade on Binance:
  • Fees: 0.1% (claim up to 50% discount)
  • Accessible Globally

Use Binance Now

2. KuCoin

kucoin exchange

Second best place on crypto-trading website takes KuCoin. For the last 6 months it has been receiving a lot of transactions and traders seem to be very satisfied with its method. They are serving the industry with the superior customer service and a good enough UI/UX.

It ranks in top 25 exchanges on CMC and one of its main benefit for costumers KuCoin Shares is good to HODL because it uses and exchange that  follows a profit-sharing system and distributes 50% of their daily overall trading fee revenue to users holding their exchange-based token, KuCoin Shares (KCS).

KuCoin is one of the rare exchanges that pays you NeoGAS for holding NEO on it.

  • Start Trading on Kucoin
  • Fees: 0.1%
  • Accessible Globally

3. Changelly

changelly

Without mistrust, Changelly is considered as one of the easiest to use cryptocurrency exchanges in the market. The procedure is very simple, you can easily send one currency and substitute it of another supported currency.

Changelly requires you to sign-in with your email ID, but delightedly it does not require you to go through the monotonous KYC process.

Via Changelly it’s easy to use exchanges if you are interested on buying cryptocurrencies through debit/credit cards. Currently, it supports more than 35 cryptocurrencies along with fiat pairs such as USD/EUR.

To conclude with, Changelly charges a commission fee of 0.5% on each trade, which is minimal in exchange for the volatility and risk that they bear on behalf of their users.

Start Using Changelly Now

4. Coinbase

Coinbase

Another well-known Bitcoin and cryptocurrency exchange is Coinbase, that is mostly used for buying/selling cryptos like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

You can deposit your fiat currency (USD, EUR, GBP etc) into Coinbase and easily gather your cryptocurrencies that you can later withdraw in a Ledger Nano S or Trezor-like device.

A bonus that Coinbase offers you is that it allows you to buy cryptocurrencies via credit/debit cards. I will reveal you some simple steps on how you can buy cryptocurrencies on Coinbase:

  • Register at Coinbase.
  • Complete photo ID verification.
  • Go to the payment methods page
  • Click on +Add Payment Method on the right-hand side.
  • Choose Card and add the credit/debit card.
  • Accept and allow Coinbase to make two small transactions.
  • Coinbase will make two very small test transactions between 1.01 and 1.99 in your local currency. Log in to your card statement account and note the amount of those transactions.
  • Enter the amounts transacted in the Coinbase app.

Start Using Coinbase Now

5. CEX.io

cex.io buy

Another easy reachable website for buying/selling cryptocurrencies is CEX.io, mainly because their UI is effortless and uncomplicated and also their past track record is brilliant.

CEX (linkun) is a Uk based exchange and it has been on serve for 5 years now.

Just as Coinbase you can deposit fiat currencies like EUR, GBP, USD, RUB etc on CEX to buy/sell cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Stellar, and Ripple.

Also it should be mentioned and remembered that their main traffic is from fiat currencies (They are in top 35 cryptocurrency exchange as per CMC), so when speaking in terms of liquidity, they don’t seem to have any problems).

Their beneficial element of letting traders buy cryptocurrencies via debit/credit card also makes it easily approachable for beginners.

You can buy cryptocurrencies by following these simple steps (taken an example of Ethereum):

  • Register at CEX.
  • Go to Cards.
  • Configure your credit/debit card.
  • Verify your credit/debit card.
  • Select the amount of Ethereum to buy/sell.
  • Exchange your currency for Ethereum.

The card verification takes 24-48 hours, but post that, you can buy ETH instantly. Consequently we always notify users to keep your card configured in CEX even if your plans don’t consist of buying ETH immediately.

Here is a video guide to help you on how to link a credit/debit card on CEX.IO:

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Additionally, just as some other trading-websites Coinbase have also mobile apps for both Android and IOS versions.

Now it’s your turn to tell us: Which one of these exchanges do you like the best? Let me hear your thoughts in the comments below!

If you liked this post, don’t forget to share it on Twitter & Facebook!

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$200 Bln Market Cap, $10 Bln Day Trading: How Far Can Crypto ‘Vortex’ Go?

The trading frenzy following Bitcoin’s push to $7,500 is in full swing with almost $10 bln changing hands in 24 hours.

Data from Coinmarketcap shows a combined $9.2 bln flowing through exchanges tracked by the resource since Thursday.

The global cryptocurrency market cap is now over $200 bln, a new record, with Bitcoin accounting for $125 bln.

The market cap news influenced proponents of the digital currency more strongly, with evangelist Trace Meyer describing it as a one-of-a-kind wealth transfer. He told the audience in a lecture at LaGuardia Community College in New York this week:

“This vortex that’s just going to suck in so much of the world’s capital… it’s going to be a wealth transfer the likes of which humanity has never seen and probably won’t ever see again for a long, long time.”

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Commenting on the price and volume growth, instant conversion platform Changelly told Cointelegraph the prospect of the SegWit2x hard fork was the more dominant factor influencing markets.

“We suppose that the possible Bitcoin hard fork is the key reason of the tremendous uptick… In order to get extra coins, investors buy more BTC and exchange so-called altcoins to BTC, causing enormous demand,” CEO Konstantin Gladych said.

“We’ve seen 3x increased demand on buying Bitcoin for the last few days on Changelly.”

Altcoin markets have tumbled with Bitcoin’s rise, many reaching lows not seen for several months, Cointelegraph reported Thursday.