Ex-Chairman of Canaan Jack Kong Faces Crypto Project Hack From Insider
Jack Kong, former chairman of China-based computer hardware manufacturer Canaan, has disclosed a hack of a cryptocurrency project that he has invested in.
The hacker was reportedly an insider from the crypto project and fled to Thailand following the crime. “The hacker fled to Thailand but he was arrested and returned to China within 48 hours after working with the Chinese police,” a Tweet by Wu Blockchain read.
“The insider hacker has been lurking for a long time, secretly photographing passwords and changing hardware wallets.”
Kong wrote on Oct. 1 that the crypto project imToken immediately investigated the issue and initially believed that it might have been phished.
“At first, there was no suspicion that it was an internal crime. Even if imtoken gives a conclusion that it excludes the possibility of fake wallet clients, authorized fraud, and Lido phishing, it is impossible the team has no particular target of suspicion.”
Kong personally received the information from the project team regarding the attack and immediately assisted the team in contacting several institutions.
“However, due to the uncertainty about the recovery of the funds, I decided to reduce the investment in full,” he added.
Kong noted that a few hours later, another breach was reported from “another large wallet.” Only after this, the project team began to further investigate the possibility of an insider hack and reported the case, he added.
A case was filed by the police the next day, Kong’s translated Tweet read. With the help of crypto exchange Bitmart and blockchain security platform Slow Mist, the crypto project assisted the police by issuing substantiation letters to different platforms.
“The suspect tried to cash out some Thai baht through a website,
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