On Monday morning our efforts to keep Vertpig online failed, resulting in the need to take the platform offline.
In the early hours of Monday (15th October) we became aware of an irregularity in our wallets when there were a bunch of uncompleted Swaps that had failed to pay out. Upon immediate investigation we found that a vulnerability had been discovered on our Swap service that had allowed an attacker to steal funds from the Vertpig platform.
We immediately applied a patch and kept the platform online whilst we assessed the financial damage. After deciding to seek finance from our bank to cover the lost funds, we started that process to repair the financial damage without the need to cause any distress to our users and the Vertcoin community.
Previous to us becoming aware of this attack, we had been seeking cryptocurrency investment to expand our Swap service. The finance from our bank to cover the lost funds was going to be issued on the basis we found this investment we were already looking for as they felt without this expansion we would not be able to afford the repayments going forward.
During the process of this, we kept the platform running using the funds we had remaining. We processed 100’s of successful withdrawals from the platform in the week leading up to the closure.
Unfortunately failing to find the cryptocurrency investment, on Monday (22nd) October we had a meeting in which resulted in our finance from the bank falling through.
Due to the fact we had lost a considerable amount of funds in our storage as well as processing a huge amount of withdrawals after the attack, our funds were running low and we had to make the decision to close down the platform to seek further advice.
Because Vertpig has suffered a catastrophic loss of funds, we are currently still seeking further legal advice on the next steps.
As it stands and from advice we have already received, we are hoping to re-open Vertpig as a Swap only service. With no exchange and no custody of users funds, going forward with part of our expansion plans with all profits from the platform going to our creditors until they have all been repaid in full.
Whilst we understand they won’t be repaid overnight, or unlikely even in the next few months, we hope that one day we can have repaid everyone for the loss we have caused.
This decision is of course down to our creditors and once we have the details and advice we need to go forward, we will release further information.