What is a Decentralized Exchange after the Bancor Hack?


#1

14 million USD in ETH stolen from decentralized exchange Bancor
https://www.coindesk.com/token-platform-bancor-goes-offline-following-security-breach/

How are they able to call themselves decentralized if it all of their ETH funds were apparently sitting in one wallet?

What is a decentralized exchange? I’m confused?


#2

I guess it was locked in some kind of a ETH smart contract (which tend to be insecure as far as I can see).

Hopefully no single entity had access to those funds so technically it was decentralized in that sense. It was a badly written code though and everyone was forced to use it, so they didn’t get the security benefits of decentralization.


#3

I think I understand. Those ETH contracts must be a devil to write. They keep breaking!

The only single entity that has access to all of the funds is the hacker!!!


#4

There is always a possibility that they left the code vulnerable on purpose and exploited it later as a an exit strategy.


#5

True. Bancor raised 150 million in ICO money. The largest ICO ever, at the time. Of course, that has been eclipsed many times over by telegram, eos and others that I don’t have the time or inclination to follow or care about.

I wonder if their codebase was reviewable… AND if anybody actually reviewed it?

Well, I suppose the “hacker” reviewed it carefully enough.


#6

It’s a bit unbelievable to use the name Bancor for something presented as “decentralized” !


The objective of Bancor was super-centralisation.

Dissonance from the very beginning.