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Cryptocurrency Exchange Huobi Involved in Security Breach
- summary
- score
In May 2023, a man named Ou lost millions in cryptocurrency when his wallet was emptied. He traced the theft to a backdoor in his wallet app, installed by three employees of A Company. These employees had programmed the app to steal private keys and mnemonic phrases, planning to use them later. They were caught before they could act, but Ou's coins were still gone.
Further investigation revealed another culprit, Zhang, who had also embedded a backdoor in a different wallet app. He used stolen keys to transfer Ou's funds to his own wallet. Zhang was caught and agreed to compensate Ou partially.
A Company is suspected to be Huobi, a major cryptocurrency exchange. Huobi has been linked to similar security breaches in the past.
Key Terms:
- Backdoor: A hidden part of a program that allows unauthorized access.
- Private Key/Mnemonic Phrase: Essential codes for accessing cryptocurrency wallets.
- Cryptocurrency Exchange: A platform where digital currencies are traded.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting with in-depth analysis. |
| Social Impact | 4 | Strong social discussion, influencing some public opinion. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 5 | Very high potential to trigger larger events. |
| Practicality | 4 | Highly practical, applicable to real problems. |
| Entertainment Value | 3 | Some entertainment value, attracts a portion of the audience. |