The Crowd Machine CEO made a public update earlier this week about the ongoing investigations into the CMTC (Crowd Machine Compute Tokens) theft. CMCT is the native token of the Crowd Machine decentralized eco-system.
In an update on the CMTC token theft, Craig Sproule, CEO and Founder Crowd Machine, the blockchain-based distributed cloud platform, informed the community about the ongoing investigations into the incident. This update was made on the official blog of the firm on Medium.
CMTC Tokens Hacked
The firm had earlier on Saturday revealed details about the hack of the company’s cryptocurrency wallet resulting in the theft of the platform’s native tokens CMTC. The hacker stole one Billion tokens which were later transferred to various exchanges. Post the news of the hack, the price of the CMCT tanked by 87% to a low of around $0.0019.
The Current State of Investigation
As per the blog, the company had notified the local law enforcement authorities who have been carrying out investigations into the cyber-crime. Sproule stopped short of naming the agency working on the case so as not to jeopardize the investigations.
According to this update, an arrest has been made in the case, trading of CMCT has been halted on most exchanges, and the company is working with the agencies to recover the stolen assets.
The Blog advises the public not to purchase the CMCT tokens until the investigations are complete. Trading of the crypto-asset on exchanges is expected to commence upon completion of the probe. Sproule goes on to clarify that purchases of the stolen coins by customers who are not related to the crime would be honored. Once trading commences, the company would make an official announcement to that effect.
About Crowd Machine
Crowd Machine is a blockchain start-up based in San Jose, California. The project aims to disrupt the trillion-dollar cloud computing industry by providing a low-cost, decentralized infrastructure for execution of DAPPS (Decentralized applications).
Owned by the cloud app server specialist Metavine, the platform leverages the world’s surplus device processing capability to create a highly capable distributed cloud. The eco-system also provides a development platform that will allow users to create smart contracts and DAPPS without having to get into the complexity of having to write code.
Through its blockchain-based model, the company aims to reward its participant community and achieve global penetration. To encourage adoption of the platform, the firm has established what it calls as Crowd Academy, a training platform for its developers and users.
Incidents of hacks and thefts of crypto-assets on exchanges and firms like Crowd Machine expose the vulnerability of the blockchain-based platforms. Such events act as a deterrent to mass adoption of cryptocurrencies by larger institutions and organizations. The developers of the open-source community need to come up with solutions to improve the security aspect of the digital assets if they aspire to replace the currently deployed centralized systems.
What steps, in your opinion, should be taken by exchanges and cryptocurrency projects to safeguard a large number of digital assets that they need to store? Let us know in the comments below.
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