Physical Crypto-Card HashCard ICO Gets Hacked

The bank accounts and token sale are suspended.

by Marin Marinov
28 May • 3 min
In News

Hong Kong-based Hash Network Limited, the company behind the HashCard project for a physical cryptocurrency debit and ATM card, announced its Initial Coin Offering (ICO) has been hacked. The bank accounts and token sale are suspended at the moment and the company works on resuming operations, it said on its website.

The hackers first spammed Bancor, the HashCard wallet protocol for token conversion, and cancelled the listing. Subsequently, the attack moved on to the bank accounts.

People who got the cards revealed the bank name/bin and the bank got about 500 requests in two days from the same group of angry fudsters. The bank paused all the cards and stated we should stop accepting new customers as for now,” the company explained in a statement.

HashCard reversed all the mails during the hack and blocked the cards that had been activated earlier.

“We regret to share such news, but this is crypto reality. We are doing our best to resume operations as soon as possible,” HashCard noted.

HashCard’s ICO started on May 1 and was planned to end on June 12. The project token, dubbed HashCard token (HSHC), is an Ethereum-based ERC20 token with the price of HSHC 1=USD 0.10. The ICO has a soft cap of USD 3 million, or 30 million HSHC tokens, and a hard cap of USD 9 million, or 90 million tokens. 

What is HashCard?

 

HashCard is a Hong Kong-based project that started in 2018 with the aim to develop physical cryptocurrency debit and ATM cards. The company wants to enable users to convert their virtual coins in fiat money, USD and EUR, and vice-versa in real time. The users of HashCard should be able to pay only the exact amount for a purchase or service, converting their cryptocurrency deposit into USD or EUR, with the remaining balance kept in the user’s crypto-wallet.


Hash Card Announcement with Bancor several days before the hacking.

The HashCard wallet is already operational and functions like a mobile application for iOS and Android-based devices. The wallet enables users to store more than 25 cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). The maximum annual card amount is USD 250 000 with a USD 5000 daily withdrawal limit and an annual fee of USD 25 paid in HSHC tokens.

“The physical Hash card can be used wherever credit/debit cards are accepted. It works online and in the bricks and mortar space. It’s just like a regular credit/debit card with the key difference bring that the user is spending Ether, Bitcoin and other 25+ altcoins,” the company explained in its official blog.

It claims that the fully-functional crypto-debit card will allow purchases from 30 million merchants globally, excluding the US.

Hash Card’s CEO is Karol Kozlowski, who has worked as credit risk specialist for Austria’s Raiffeisen Bank and Germany’s Deutsche Bank.

The Initial Coin Offerings have become a popular form for crowdfunding but have also attracted attention from several regulators, including in the US, where the Securities and Exchange Commission (SEC) launched a fake ICO for educational purpose. A study, published in May, claimed that more than 80% of the ICOs are scam.