Sentinel Network said in a tweet Friday that 40 million of its DVPN coins were stolen from users through a vulnerability on the HitBTC bitcoin exchange.
- The decentralized peer-to-peer (P2P) bandwidth marketplace, which supports the Sentinel dVPN application, said that the theft resulted from HitBTC exposing its mnemonic phrase, a group of words that are designed to help recover a digital wallet or cryptocurrency.
- “This is completely out of our control, HitBTC had delayed the distribution of funds to users and compromised their own mnemonic,” Sentinel wrote in its tweet.
- In a comment to CoinDesk, Sentinel’s Srinivas Baride, called the exposure “gross negligence” and said that he hoped HitBTC refunds their users and reassesses their management of user funds.”
- HitBTC did not respond to CoinDesk’s request for comment.
- Sentinel Network allows anyone to be able to sell their bandwidth on its marketplace. Developers can use the Sentinel Protocol, built with Cosmos SDK, to build applications, both public and private, that use the Sentinel Network’s bandwidth marketplace for dVPN applications.
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