Taylor Crypto Trading App Gets Hacked, Loses USD 1.5 Million

The automated cryptocurrency trading application Taylor has been robbed of all its funds worth around USD 1.5 million in ETH and some of its own TAY tokens.

by Nina Dimitrova
28 May • 2 mins
In News

Taylor, an automated cryptocurrency trading app, announced it has been hacked and lost 2578 ETH, worth around USD 1.5 million.

According to a blog post from last week, those were all of the company’s funds. Additionally, the app also was robbed of 7% of the Taylor (TAY) token supply – “a big portion”, according to another Taylor blog post.

The TAY token was launched through an initial coin offering (ICO) in February 2018 to fund the development of the application and raised 3097 ETH in a month. Now, the only funds left are the TAY tokens in the Founders’ and Advisors’ pools, because there’s a vesting contract making them inaccessible. However, the Team and Bounty TAY pools have been completely drained by the hackers.

The Taylor developers explain that the hackers somehow got hold of a 1Password file stored on one of the company devices and exploited it. They transferred all ETH coins to a single wallet and tried to dump the TAY tokens on the cryptocurrency exchange IDEX. This prompted Taylor to ask the exchange to delist the TAY tokens and close the market for the time being. The police have also been notified.

“Even though we took the duly security measures to prevent this kinds of situation, we could not stop what seems to have been a highly advanced and coordinated attack, so for now we have more questions than answers”, the blog post read. Further, Taylor notes that most likely the stolen funds will not be recovered, but it will make everything possible to compensate the TAY token holders by issuing a new token. In the meantime, Taylor asks the TAY token holders to not buy, sell or transfer any TAY tokens and to cancel all EtherDelta orders. Otherwise, holders may lose their money and will not be able to receive the new token.

As per the latest company blog post from May 26, signed by the Taylor Co-founder and CEO Fabio Seixas, the investigation is ongoing. In addition to launching a new TAY token, the company is exploring other options to get new funding from a venture capital company or an Angel investor, as well as a “survival fund token sale” of the remaining TAY tokens.

Taylor is based in Brazil and is a kind of an automated trading assistant app. It would allow users to make small profits every day by trading in cryptocurrencies, by automatically monitoring “hundreds of markets in real time” and send trading signals to the users. Once a trade entered, the app will closely monitor it looking for the ideal exiting position, either for profit or user investment protection (stop-loss). According to the company website, initially the Taylor app will be programmed to perform a “scalping” strategy, which focuses on small profit gains of 1% to 3%. At a later stage, the company plans the introduction of new trading strategies for higher profits.

Presently, Taylor is in a beta testing mode.