UnHacked - Cybersecurity Made Simple for Small Businesses

Justin Shelley (00:02)
Like may maybe we got hacked too. I don't know. Where'd Mario go there we go. There we go.

Mario's I was like, nobody's dancing this time. I guess then Mario throws it in there. Guys, breaking news. we just finished recording episode 110. this one you'll notice is re ⁓ named episode 110B. because we've got some breaking news we want to talk about. And for the first time in unhacked history, episode 110B is gonna actually release before the original 110, before we're gonna go in the time machine today.

Joshua Holloway (00:15)
I had a little head head shimmy for a second.

Justin Shelley (00:40)
Josh, you brought this to our attention. Jump in. What the hell's going on out there now?

Joshua Holloway (00:45)
Yeah, so as we were finishing up, I I stood up to walk out and I started receiving news notifications that the crypto wallet company Binance has suffered ⁓ a hack where for between an incident, sorry, there was an incident between ⁓ October twenty second and ⁓ twenty twenty seven, there was about ⁓ twenty-nine user wallets that were drained of four hundred thousand thousand dollars total. But

Justin Shelley (00:57)
An incident?

Mario Zaki (00:59)
Incident, yes.

Justin Shelley (01:00)
Yeah.

Total we're we're a total loss of four hundred K, okay?

Joshua Holloway (01:16)
Yeah. But I am just now receiving information that now they're saying that there's currently two point seven seven billion with a B billion dollars worth of crypto currently moving around blockch five different blockchains draining from wallets.

Justin Shelley (01:36)
Whoa, okay, not that not that people got wind of this and are saving it. But it's we don't Okay.

Joshua Holloway (01:42)
I I'm I'm as I'm assuming it's gonna be a little bit of both. It's it's gotta be a little bit of both. Or at least here's hoping. I hope somebody got a hold of this information and started moving their money. I just announced it to my team just in case anybody has a a Binance wallet. I I personally do not, ⁓ nor would I ever disclose. But

Justin Shelley (01:49)
Yeah.

Yeah, right. I have a hard drive that I lost that has like two billion dollars worth of bitcoin, but I can't find it anymore. wait, no, I have the hard drive, but I lost the key. Whatever the story is.

Mario Zaki (02:02)
Yeah.

Joshua Holloway (02:04)
But I'm saying

d yeah. Yeah, whatever the story is. But ⁓ currently so the this is developing information. But just from that developing information, obviously, you know, we're not financial analysts, but the market is currently seeing a downturn because of the incident.

Justin Shelley (02:24)
Which like the entire global market? We talking about the Nasdaq, what what's

Joshua Holloway (02:29)
All markets per per yeah, per my latest notification, all markets are currently taking. Or maybe they're they're they're starting to balance out. But ⁓ if you think about that, two point seven seven billion of people's personal finances, their investments into crypto, gone, move somewhere else. Or move somewhere else intentionally for their their own protection.

Justin Shelley (02:30)
All markets are just tanking.

Yeah.

Yeah. A lot of money's moving right now.

Mario Zaki (02:55)
Yeah, I mean even I'm looking at at ⁓ at Bitcoin, it's it's dropped.

Joshua Holloway (03:02)
I'm sure it's gonna be in a free fall at this point.

Justin Shelley (03:06)
Let it this this is terrible, but like let it hit rock bottom and then bye, bye, bye.

Joshua Holloway (03:12)
Yeah, so one of the things that they are noticing is like a lot of the stolen assets because of blockchain, you know, they can kind of see it's being routed through relay contracts bridge to Ethereum. So it's it's I mean, now would be the time to invest in Ethereum, maybe, because it it may skyrocket in its value. And then

Justin Shelley (03:33)
⁓ here w here I've got breaking news coming in over the phone right now. Let me let me see what's going on.

Joshua Holloway (03:38)
It's got that teletype going for those who remember it.

Justin Shelley (03:43)
I I apologize, I forgot to mute my phones. Well, I thought we were done recording, so I'm like, back to business. Or not. So, all right, Josh, l admittedly, you're ahead of the game on this because you brought it to my attention. I'm trying to read. We just hit record. I'm trying to read up and know what the hell we're is going on as you talk. But what i is there any official advice being given to people who do have investments? I mean, can you find anything on that?

Joshua Holloway (04:09)
So far I haven't found anything. ⁓

Justin Shelley (04:15)
All right, well then talk about the security flaw itself because you you started either you before or after we hit record. I don't remember. How did this happen? This is like giga fucked as the kids would say.

Joshua Holloway (04:15)
No. So

Yeah, so ⁓ so far the released information, because again, this is mounting between the twenty second and twenty-seventh, and now all of a sudden we had a larger incident take place. but then initial findings, the initial investigation from a company called ⁓ Predict.fun team pointed to a compromise of a third party hosted API documentation website.

Justin Shelley (04:32)
Yeah.

Joshua Holloway (04:50)
on chain analysis indicates that each drain was authorized with the owner's own keys rather than a smart contract exploit. So that means that they got into the wallets and they have the keys of those individual users. So they were authorized to transfer that information.

Justin Shelley (05:07)
It does it say at all how they would have acquired these keys.

Joshua Holloway (05:11)
I mean they this is pure speculation on my part. ⁓ that they would have they would have to be inside Binance in in the background with access to directly to those keys because those keys should be locked down to the individual users.

Justin Shelley (05:14)
Yeah, yeah. Hit us.

And like should be encrypted in every way possible. I don't know. This is this is crazy. And ⁓ listen, I I don't want to kick somebody while they're down, but I go to Binance's website and they're just like trusted by everybody. We are the greatest. Like, bitch, take your website down right now. This is this is nuts.

Joshua Holloway (05:37)
Mm-hmm.

Yeah, and initial the four hundred thousand the the from predict dot fund, so they made a statement that they would be fully reimbursing all affected users for direct losses. So they were on the hook for four hundred K. ⁓ and if it links back to the two point seven seven billion ⁓

Justin Shelley (06:09)
Yeah, that's bad. To state the obvious. It's bad and Kay.

Joshua Holloway (06:10)
That's really bad.

Mario Zaki (06:13)
I mean they're the they're cooked.

Justin Shelley (06:17)
Along with a lot of people. This is this is this is awful. I I I just don't even have words. I w good thing we hit record so I could h sit here and go, ⁓ holy shit.

That's all I got. Good lord.

Joshua Holloway (06:32)
Yeah. No, but this is this is developing more information to come. I I I would say at another time we may update this one, but ⁓ I know you and I were talking about it, Justin, and we just decided to hit record. I sat back down after reading up on it. but I am getting notifications through all my various trading services that I use and and and things like that. It's just pinging as crypto is dropping, the markets are dropping.

Justin Shelley (06:44)
Yeah.

Joshua Holloway (07:01)
So a lot of things are are indeed in fact being affected.

Justin Shelley (07:08)
Ooh, Mario, are you finding anything Yeah, you're being awful quiet over there. I'm sitting here at least going, my god

Joshua Holloway (07:08)
Mario, what's your take?

Mario Zaki (07:12)
I'm just I'm trying to go and sell some of my qu bitcoins. ⁓ because it is dropping. You know, since we've been on on the air seven minutes, it dropped it dropped like ten percent. ⁓ it it it's it it's bad. I mean this is this is not gonna be like yeah, and and so many things are kind of gonna they're worried that it's gonna ⁓ end up

Joshua Holloway (07:14)
Ha ha ha.

Yeah.

Yeah, so go ahead, Mario.

Mario Zaki (07:42)
trickling over to like other s platforms and stuff like that. People are just gonna panic and

Justin Shelley (07:46)
Well, you've got two problems here, right? You've got the actual incident, which took actual real money from people. ⁓ excuse me, but now we've got the snowball effect where money's going to vaporize because it's not real. Money is trust. Trust is lost, money goes away.

I'd I'm

Joshua Holloway (08:06)
So I did I did get a little summary update if if this helps. So going back to the 2.77 billion, ⁓ so outflows totaling 2.77 billion were observed from Binance linked wallets across five different blockchains. The large fund outflows prompted suspicions of asset theft, but whether it was a hack has not been confirmed with no official confirmation so far. ⁓ I I should have replaced the word hack with ⁓ incident.

Justin Shelley (08:09)
Okay.

Okay.

Joshua Holloway (08:37)
it is a di it's difficult to conclude that the observed outflows represent actual losses. So again, it goes back to my previous statement. This could have been theft or this could have been people protecting themselves. Preventative ⁓ measures. So ⁓ my recommendation would be protect.

Justin Shelley (08:42)
Yeah.

Preventive

Sow, sow, sow.

Mario Zaki (08:55)
Or this the the company may be kind of moving their moving out of their system if they can.

Joshua Holloway (09:02)
I hope so.

Mario Zaki (09:04)
Yeah. 'Cause that's a that's a large amount of money to be moving around that

Joshua Holloway (09:10)
I mean, we're not financial analysts nor ⁓ you know, financial guys, so but like buy gold.

Mario Zaki (09:17)
Yeah.

Justin Shelley (09:17)
Yeah.

Mario Zaki (09:21)
I've never been a fan of this crypto crap anyway.

Joshua Holloway (09:24)
now you're gonna get the crypto fanboys jumping on unhacked to to yell at us.

Justin Shelley (09:28)
Good. Bring it.

Mario Zaki (09:29)
I yeah, I mean that's the thing. It's like when you're giving especially when you're talking about ransomware and stuff like that, if you're giving these guys a way to ask for money and not be tracked or traced, you're opening the doors. And you know, like that that's the whole thing. It's like, you know, they're not gonna sit there and say, Give me your credit card number. You're Yeah, sure, here's my credit card number. You know, it's now this is this this when this happened, like it's it's a way where like

You know, you're sending money to somebody that's never gonna be traced or very be very hard to trace.

Justin Shelley (10:06)
True, true.

Joshua Holloway (10:10)
Well, gives you something a little bit more to pump out there on this breaking news matter.

Justin Shelley (10:14)
Yeah, I guess I guess we'll wrap now. I don't I don't know what else to say 'cause like we really don't even have any information, but I'm just looking at these charts and

We may be back with another one ten-c episode if if anything happens. Guys, I'm gonna go start I'm gonna start studying and figure out what's going on in this world. ⁓ good luck with that. ⁓ unless you guys have any final thoughts, we're gonna we're gonna get the fuck out of here. All right.

Joshua Holloway (10:35)
more news to come.

Mario Zaki (10:45)
No, that's it. You know, maybe maybe tomorrow or something.

Joshua Holloway (10:47)
Nope, just do what you can to stay stay unhacked.

Justin Shelley (10:50)
Yeah, stay unhacked. Too late Shit. ⁓ God.

Mario Zaki (10:58)
Yeah, everything is a red.

Joshua Holloway (11:02)
Unhacked.