Dear TIOnauts,
Around 08:40 EST, our security team was alerted to a large transaction from one of our wallets held in cold storage. As they investigated, they started noticing some irregular trading activity in TIO pairs on Bancor & Kucoin. We alerted both Bancor & Kucoin accordingly to disable any deposits & withdrawals, and did the same on trade.io. TIO Deposits & Withdrawals will be disabled on both Kucoin & trade.io until further notice, and TIO will no longer be listed on Bancor. Additionally, TIO trading has been disabled on trade.io exchange until further notice.
While the investigation is ongoing, based on Etherscan records, we can confirm that the 50M TIO allocated for the Liquidity Pool being held in cold storage has been withdrawn, and an estimated 1.3M of that had been transferred to both Bancor & Kucoin respectively. Both exchanges are assisting trade.io in our investigation.
Unfortunately, while this is an extremely strange situation, unfortunately breaches of cold storage is not unprecedented even when following security protocol to a “T”. We use industry recommended cold storage which are maintained in safety deposit boxes in banks, along with all corresponding materials. We have confirmed that the safety deposit boxes were not compromised.
To this end, we are currently considering various options with one being a fork, with the objective of making the 50M that were taken from us worthless, but protecting the value of TIO for everyone else, as the 50M are traceable. We will advise on our decision in the next 24 hours following a meeting by our board.
Lastly, please be assured, that those participating in the Liquidity Pool, distributions will be completely uninterrupted, and ability to enter and leave the Liquidity Pool will continue as normal.
It’s obvious that trade.io is now a major focal point of competitors and those attempting to destroy the movement that is on the ground floor, and we guarantee you we will not bow down to their actions. We have the strongest community in crypto and we assure you we will wind up stronger as a result of actions like these and any such attacks in the future.
Regards,
Jim Preissler
