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NULS, an open source blockchain-powered platform, posted a security update notice on their social media account on Twitter on 23rd December.
NULS announced that the security team at the company has recently detected an account belonging to NULS that was attacked by black hat hackers and resulted in a total loss of 2 million NULS tokens, which would be equivalent of $480,000 US dollars.
The blockchain firm further details that among the digital currency lost due to the attack, almost 548,000 NULS tokens (worth around $131,600) were not able to be traced because it has entered the crypto trading market.
The NULS team assured the costumers in the security update notice that the company has decided to conduct a hard fork as a counter-measure, a rule change process in which the software following the old rules will see blocks of new rules as invalid, and at that point the block is 87,800.
After conducting the hard fork, the company disclosed that the remaining 1,451,645 tokens did not enter the cryptocurrency market. This provides them with the opportunity to immediately destroy them in a permanent freeze to create obstacles and prevent their flow into the market. This course of action will minimize the damage caused to the community of the blockchain platform.
2,000,000 Tokens Compromised
NULS further shared the cause of the attack in the post, detailing that the attackers were able to gain access to the database due to a security vulnerability in the version of the platform called NULS 2.2. After 2,000,000 tokens were compromised, the company was able to fix the vulnerability and secure the system once again.
The NULS team has said that they have contacted the various exchanges that hold their tokens and they have been cooperating with them accordingly to find different ways to reduce the damage done.
The team also stated that they are working hard on the hard fork process and are positive that it will work. They will release it as soon as it is ready to be launched in order to avoid any further delays. They concluded the post by apologizing to the consumers for the inconveniences and an additional statement that requested users to upgrade.
The team said that in order to avoid receiving any unnecessary ‘yellow cards,’ it is mandatory for the node owners to upgrade the node to the latest version as soon as it is convenient for them.