This didn't make any sense as none of the keys used had been shared with prior infrastructure. When we awoke Saturday morning, it was discovered that Bitcoin and Ethereum had yet again been stolen from the new hot wallets. We relaunched the site on this third set of infrastructure (Friday night). We cycled all keys and spun up brand new infrastructure on an entirely new host, once again, 24 hours later.ĭuring that rebuild, contact was established with the hacker, who indicated that the rogue employee from the month prior had given the hacker the information needed to carry out the attack.
We took the site offline, and decided to assume the infrastructure itself and all keys were potentially compromised. We were initially unable to determine how it had happened. On April 7th, last week, as we were about to migrate the service to a new host (having worked for a couple weeks on new infrastructure in the wake of the theft), we noticed three hot wallets had been hacked, Bitcoin, Ethereum, and Litecoin (roughly 97 BTC, 3600 ETH, and 1900 LTC). We planned to get the stolen property returned, and thought that was the end of it.
SHAPESHIFT DNOTE HOW TO
As we had quickly figured out who it was, and how to resolve it internally, we were able to keep the site running uninterrupted. It was reported to relevant authorities, and a civil suit was opened against the individual. It was quickly discovered that an employee at that time had committed the theft. On March 14th, ShapeShift had 315 Bitcoin stolen from its hot wallet. I will also be publishing a much longer narrative detailing the entire event, which is really quite a story. In tandem with the release of that report, below are the basics of what happened, in plain English. We've asked them to make this report public, though some personal and system identifying information has been redacted. A report has been prepared by our forensic auditor, Ledger Labs, which details the technical findings. While work continues on the hardening of ShapeShift infrastructure, we have concluded our forensic investigation of the events last week.
SHAPESHIFT DNOTE UPDATE
Update on the ShapeShift Hacking Incident
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