Since crowdfunding our company, EncryptoTel has experienced a number of challenges and problems. We can assure you that we are only getting stronger as a result of this, and this in no way reflects the status of the company and especially the completion of our software products in the future.
Yesterday, late in the evening Moscow time, our BlockSwap service was attacked and ultimately hacked. The amount of losses is a staggering 38.5 million ETT tokens from the Ethereum chain and a further 3.8 million ETT Waves tokens.
We believe, the right course of action, and the one that will be the least disruptive, is to reissue only the Ethereum token. The second part of addressing this situation is to determine how this happened and who is responsible, so that the losses (in the form of the Waves tokens) are borne by the right party. We are actively investigating this. When we learn how the attacker was able to gain access to the tokens, we will update the community.
Alongside this, we will be reviewing our use of BlockSwap, in the light of the information we gather. If there is a vulnerability, we will of course stop using it in its current form and likely develop our own solution to serve our investors’ needs. We know that MobileGo are also developing their own solution, which we may also use. This decision is currently open, pending further information, but we want to reassure investors that security is our highest priority. We will compensate all wETT losses.
Taking into account the problems we face, We ask those who have not yet received their tokens to be patient. Those who received tokens on the Ethereum blockchain, please check your addresses once again for the new Ethereum ETT tokens.
If you have any problems with receiving ETT, please contact Cyrille from Incent team via Slack or email (firstname.lastname@example.org) with your query. He will be happy to address all your questions related to the distribution of tokens. Any other questions please send to email@example.com.
Lastly, we want to reassure our investors that we fully understand our obligations and have already begun to develop the promised software product. We are keen to put these weeks behind us and concentrate on this, and we are certain that the results will please our investors. A lot of important developments and announcements are on the way.
CEO of EncryptoTel