Beware of the Etherdelta Token Exchange.

in #cryptocurrency7 years ago

In this report I look at how some of my tokens were stolen from the Etherdelta exchange.

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Sorry to hear your story. I do not use EtherDelta although it could be fine to use. A quick look at their site indicates that they are focussed on ETHER based tokens. The publish under their TOKENS menu addresses related to token purchase/issue smart contracts. It is speculation on my part that you may have transferred your tokens to one of these smart contracts and did not actually pull up the correct deposit address (which would be a different address) after you logged in. Taking an example for the OMG token they state categorically under the Token smart contract that it is not a deposit address and if you use it then your tokens will be lost forever. Your apparent barring from the chat could be for two reasons being - you were using the forum for the wrong purpose OR some places do not like negative comments and simply bar people that even suggest wrongdoing - an example I have come across is the now defunct P2P lending platform called BTCJam.
Technically you should be able to track your token movements through the Ether blockchain and by transaction references (in your transaction history) on EtherDelta. I would encourage you to look deeper into the loss - the blockchain has key features - being public and immutable, so your tokens are somewhere. All the best.

@sesises I have looked into etherscan in myetherwallet and I have found that my tokens (I had two different kinds) were transferred to another ether address yesterday even though I did not do the transfers myself. I have both transaction references and the address they went to. Would that help me in recovering them?

So sorry for your coin loss, Maneco. I'm sure you already know this, but keeping coins or ERC20 tokens on an exchange for any extended period of time is a bad idea. Hope you don't mind, but I just published an article on this earlier today and used your video as a prime example of a "worst case scenario":

https://steemit.com/cryptocurrency/@cryptohero.info/cryptocurrency-security-101-exchanges-aren-t-safe

If your coins were transferred to another wallet, it means your private keys were indeed compromised. Can I ask if you were using a Windows machine? Your OS may have a keylogger on it, in which case you might have to wipe the entire machine. I understand it's not practical for everyone, but if you're going to keep a hot wallet on a home computer, it's best to use Linux as there's very little malware written for it. It's easy enough to make an encrypted Linux USB boot drive to store altcoins on - I'll hopefully be publishing a guide on how to do so later this week.

The other potential security breach is that your emailed login info for EtherDelta may have been compromised - I'd change your email account password as well, just to be safe.

@cryptohero.info I use Apple Mac iOS.

Good luck. Clif's reports has lots of talk about these "exchanges".

Sorry to hear that. I have used it many times without losses, but try to get in quickly to the exchange and then quickly get out.

That sucks, but with crypto coins and a digital currency it's more easy to steal then something physically. Gold and silver my best bet but still have to invest into crypto, they tried hard to shake the weak hands this past week, let's see how this week goes.

I Have had problems with Poloniex and Hitbtc... exchanges are games and why China is shutting them down. In and out as fast as you can when or if you use them.

Yes. The whole scene is a wild west show. I experiment with small amounts and have had a couple of "accidents" also.

@maneco64, you shouldn't have to enter your private key phrases to login. Its only at registration these are normally needed. Spam sites use very similar addresses and try to get you to enter key phrases. Once they do, they can then use these to take over your account and take your cryptos..
I wrote a steem article about it a few weeks back.
https://steemit.com/bitcoin/@diarmaidflynn/phishing-sites-trying-to-fool-you-re-bitcoin-cash-retreivel-from-coinbase-poloniex

Good summary of your experience with EtherDelta. Negative news needs to be published to warn other users.

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