It has become apparent that any project raising money through a token sale faces many uphill battles at the same time. PayFair is one of those projects which finds itself in contested waters. In a recent update, the team claims someone tried to hack the team’s funds, which results in the platform being taken offline for the rest of the week.
The PayFair Hack
Not too much is known about what the culprits did exactly to attack PayFair. One thing is evident” they aimed to drain the team’s cold wallet, a venture in which they were only partially successful. It is always unfortunate when projects which raised millions of dollars fail to keep their own funds – as well as money belonging to users – safe from harm. Even in 2019, that remains one of the biggest problems in the entire cryptocurrency industry.
According to sources close to the matter, the user funds located in escrow accounts and on client balances were kept safe from harm. All of this money currently resides in a backup wallet of which the address has not been shared with the public. Some of the Ethereum still controlled on the platform has been taken, however, albeit no one offered any insights as to how much money is involved. More information is expected to be released in the coming days.
Telegram Limitations and Website Offline
As part of the ongoing issues, there are some limitations users will have to contend with right now. More specifically, the Telegram channel of PayFair will be very limited in functionality. None of the users can write in the main chat, which means they cannot ask questions or share information they may have obtained through other means. In this case, the team claims this move is done to ensure there will be no trolling or spreading of misinformation.
Furthermore, the official website and platform associated with PayFair will remain inaccessible until later this week. It is expected functionality will be restored over the course of the weekend, albeit very few details are available at this time. By that time, users should be able to determine if all of their funds are still there. Rest assured these countermeasures will spark some conspiracy theories as well, albeit everyone has to wait and see how this situation unfolds.
Security Problems Persist
If there is one particular trend in the cryptocurrency industry these days, it is how hackers remain successful in their attempts to steal funds. Whether it is by targeting exchanges or individual projects, their chance of success remains relatively high. It is uncanny how all of these service providers fail to take cybersecurity seriously, especially given the track record of successful hacks in the cryptocurrency industry. Something needs to change in this regard, and it needs to happen sooner rather than later.
Looking to advertise? We will gladly help spread the word about your project, company, or service. CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected]