The crypto-exchange Bitfinex has been struggling for some time with difficulties. Now the company Cointelligence allegations to come according to research, Bitfinex would have provided his LEO ERC20 Token with a loophole. A Smart Contract should therefore be designed in such a way that he leaves open the possibility for fraud. User can infinitely produce a Token or tokens of other users delete. Cointelligence warns so strongly against the LEO ERC-20-Token.
From Polina Khubbeeva
8. July 2019BTC$11.862,00 4.36%part Facebook Twitter LinkedIn xing mail
Bitfinex is accused of a deliberate security hole in the Smart Contract of LEO ERC-20-Token installed. This is evident from research of crypto-analysis-company Cointelligence, which the company on 3. July 2019 on his website published. Therefore, Bitfinex, a Bitcoin exchange in Hong Kong is responsible for ensuring that Users of the LEO ERC-20-Tokens print an infinite number of LEOs, and the Token of other users can delete:
the owner of the LEO ERC-20 can not only print unlimited new Token, and embossing. You can also delete the tokens of all other users. Including, but not limited to, those that are centralised or decentralised exchanges. This is true for Hot or Cold Storage, Hardware or Software Wallets, as well as on paper or Brain Wallets.
This lead the authors of the Cointelligence report in your Post.
Specifically, the Token seems to be about the Code of Smart Contracts to manipulate. How Cointelligence demonstrated, you can manipulate a value by Changing the “Controller”field in the Code, the ownership of the token. The functions “generate token” or “destroy tokens” and creates new tokens or existing ones disappear.
No salvation for Bitfinex by LEO ERC-20?
problems with fraud allegations, has had Bitfinex in the past. The New York attorney General accused the Bitcoin stock exchange recently, the loss of $ 850 million of capital into crypto-currencies a cover-up. The company objected to repeated the allegations.
The LEO Token, a Utility Token that is only since may, 2019 on the market, it was regarded as an attempt of Bitfinex, to improve its Image and to eliminate liquidity problems.
Bitfinex is fighting as usual against any allegations. Also intended manipulation favoring the company. On Twitter Bitfinex CTO Paolo Ardoino says that you left the safety gaps for future Proof reasons. While the crypto Community remains skeptical regarding the cleanliness of Bitfinex‘ vest, is one thing: The LEO ERC20 brought so far, although money in the coffers of the weakened Bitcoin exchange. A relaxation in terms of trust and transparency is not yet in sight.
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