# What is a Decentralized Exchange after the Bancor Hack? **URL:** \ **Category:** Uncategorized\ **Created:** [July 10, 2018, 5:01pm UTC](https://bisq.community/t/what-is-a-decentralized-exchange-after-the-bancor-hack/5774 "2018-07-10T17:01:32Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![peoples](https://bisq.community/letter_avatar/peoples/32/6_22734026db12803ebb3e059622ac3534.png) [@peoples](https://bisq.community/u/peoples)\ **Post date:** [July 10, 2018, 5:01pm UTC](https://bisq.community/t/what-is-a-decentralized-exchange-after-the-bancor-hack/5774/1 "2018-07-10T17:01:32Z")
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? ---
**Author:** ![alexej996](https://bisq.community/user_avatar/bisq.community/alexej996/32/491_2.png) [@alexej996](https://bisq.community/u/alexej996)\ **Post date:** [July 10, 2018, 5:49pm UTC](https://bisq.community/t/what-is-a-decentralized-exchange-after-the-bancor-hack/5774/2 "2018-07-10T17:49:41Z")
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. ---
**Author:** ![peoples](https://bisq.community/letter_avatar/peoples/32/6_22734026db12803ebb3e059622ac3534.png) [@peoples](https://bisq.community/u/peoples)\ **Post date:** [July 10, 2018, 5:59pm UTC](https://bisq.community/t/what-is-a-decentralized-exchange-after-the-bancor-hack/5774/3 "2018-07-10T17:59:37Z")
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!!! ---
**Author:** ![alexej996](https://bisq.community/user_avatar/bisq.community/alexej996/32/491_2.png) [@alexej996](https://bisq.community/u/alexej996)\ **Post date:** [July 10, 2018, 10:48pm UTC](https://bisq.community/t/what-is-a-decentralized-exchange-after-the-bancor-hack/5774/4 "2018-07-10T22:48:57Z")
There is always a possibility that they left the code vulnerable on purpose and exploited it later as a an exit strategy. ---
**Author:** ![peoples](https://bisq.community/letter_avatar/peoples/32/6_22734026db12803ebb3e059622ac3534.png) [@peoples](https://bisq.community/u/peoples)\ **Post date:** [July 10, 2018, 11:19pm UTC](https://bisq.community/t/what-is-a-decentralized-exchange-after-the-bancor-hack/5774/5 "2018-07-10T23:19:19Z")
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. ---
**Author:** ![Homard](https://bisq.community/letter_avatar/homard/32/6_22734026db12803ebb3e059622ac3534.png) [@Homard](https://bisq.community/u/Homard)\ **Post date:** [July 11, 2018, 6:23am UTC](https://bisq.community/t/what-is-a-decentralized-exchange-after-the-bancor-hack/5774/6 "2018-07-11T06:23:47Z")
It’s a bit unbelievable to use the name _Bancor_ for something presented as “decentralized” ! > **[Bancor](https://en.wikipedia.org/wiki/Bancor)** > > The bancor was a supranational currency that John Maynard Keynes and E. F. Schumacher conceptualised in the years 1940–1942 and which the United Kingdom proposed to introduce after World War II. The name was inspired by the French banque or ('bank gold'). This newly created supranational currency would then be used in international trade as a unit of account within a multilateral clearing system—the International Clearing Union—which would also need to be founded. > John Maynard Keynes proposed ... The objective of Bancor was super-centralisation. Dissonance from the very beginning.