Sentinel Network Reports Theft of 40M DVPN Coins in HitBTC Breach

Sentinel said the coins were stolen because of a vulnerability in HitBTC’s mnemonic phrase.

AccessTimeIconAug 20, 2021 at 9:38 p.m. UTC
Updated Sep 14, 2021 at 1:43 p.m. UTC

Sentinel Network said in a tweet Friday that 40 million of its DVPN coins were stolen from users through a vulnerability on the HitBTC bitcoin exchange.

  • The decentralized peer-to-peer (P2P) bandwidth marketplace, which supports the Sentinel dVPN application, said the theft resulted from HitBTC exposing its mnemonic phrase, a group of words that are designed to help recover a digital wallet or cryptocurrency.
  • “This is completely out of our control, HitBTC had delayed the distribution of funds to users and compromised their own mnemonic,” Sentinel wrote in its tweet.
  • In a comment to CoinDesk, Sentinel’s Srinivas Baride, called the exposure “gross negligence” and said he hoped HitBTC refunds its users and reassesses its management of user funds.
  • In an email, HitBTC said it “always” does token swaps “according to our guidelines and on newly installed machines,” to prevent breaches, noting that “since day 1 we have had the highest standards in place for security.”
  • Sentinel Network allows anyone to be able to sell their bandwidth on its marketplace. Developers can use the Sentinel Protocol, built with Cosmos SDK, to build applications, both public and private, that use the Sentinel Network’s bandwidth marketplace for dVPN applications.

UPDATE (August 22, 17:27 UTC): Adds comment from HitBTC.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.