Simple Pos Pool hacking exposes security hole in entire masternode space: Flits

Mitchel Van Amstel demands security audits and references from pools that list Flits and Klimatas

In peer-to-peer systems, masternodes play a vital role in protecting the integrity and efficiency of the blockchain network. But the recent hacking of Simple Pos Pool has exposed the security vulnerability in the masternode space as a whole, says Mitchel Van Amstel, CEO of Flits decentralised mobile app.

“Simple Pos Pool was hacked. In the case of Klimatas, an amount of around 170.000 KTS was stolen. Flits wasn’t on Simple Pos Pool, at least not the shared node or staking part, so Flits was not affected. But the fact that this could happen is a deep crack in the trust in not only masternode pools, but the masternode space as a whole again,” Amstel said in a statement.

Coming down heavily on Simple Pos Pool for failing to provide the required security standards, he said that Flits has come up with a new security policy, and that’s applicable to Klimatas also.

Mitchel Van Amstel

“All pool providers will be required to provide us with security audits and references of people with credible references. Those who can’t will be receiving a delisting request”

“All pool providers will be required to provide us with security audits and references of people with credible references. Those who can’t will be receiving a delisting request. We will also consider history and coin storage of the platforms.

“For verification, we need full information on a company. Address information, a backed security audit, and emergency contact (name, phone) information (KYC for pool owners). We will contact the pools to see who can meet them. The last date for parties to supply this info is July 1,” the Flits CEO said.

Both Klimatas and Flits have decided to soon delist from pools that fail to meet the new security policy. “We understand that this might be unfortunate for some of you as you made the choice for a shared node probably for a reason, but we can’t risk these things to happen ever again, and we have to take this action,” the CEO said in the statement.

“We from Blockworks are an active promoter of decentralisation. We will take this position as one, if not the only project in the scene. With crypto we try to move away from banks, but remember that you also won’t put your fiat money in a safe at the guy at the corner of the street, it is almost safe every time, until a guy finds a way to open it. We can learn some things from banks and combine the best of both worlds,” he added.

Flits app known for hosting masternodes and staking had itself recently introduced enhanced features like security passcode and biometrics in its version 4.0.

Image by TheDigitalWay from Pixabay


Related articles

MetaComputers NFTs: Pioneering a New Era in Digital Collectibles on ICP

MetaComputers is set to revolutionize the world of non-fungible...

Wealthy Indians Embrace Bitcoin ETFs Through Remittance Quotas

Despite cautionary statements from India's central bank likening crypto...

Hampton Hotel Tokenizes Slice for Investors

Investors have a unique opportunity on the horizon: owning...

NASA’s Lunar Leap: A VR Metaverse for Astronaut Training

As humanity inches closer to establishing a presence on...

What Are Runes? Bitcoin’s New Alphabet of Opportunity

As the Bitcoin community braces for the much-anticipated halving...


Please enter your comment!
Please enter your name here