Ethereum Classic Hacked For The Second Time In A Week

Ethereum Classic Hacked For The Second Time In A Week

Today Bitfly and Binance reported another 51% attack and a reorganization of over 4,000 Ethereum Classic blocks in order to double spend.

The companies suspended all payments in the UTS, and also froze current deposits. To combat the attacker, the project development team also urged all miners and pools to synchronize their actions, and recommended that exchanges temporarily block the ability to deposit and withdraw cryptocurrency.

Today’s attack led to the largest block reorganization in Ethereum Classic history. In addition to the fact of the hack itself, doubts about the current security of the network are caused by the fact that this is the second major change in the ETS blockchain in the last week.

On August 1, Bitfly announced a sequential reorganization of 3,693 blocks. Despite the initial statement by the head of ETC Labs that the changes occurred by accident due to technical problems with one of the miners, further proceedings confirmed the fact of malicious actions and a double-spending of more than 800 thousand ETC worth about $ 5.6 million.

According to researchers from Bitquery, using the Nicehash service, the hacker rented computing power, and after the reorganization moved the funds to the OKEx exchange. According to estimates, only about 17.5 BTC or $ 204,000 were spent on the attack, while the profitability exceeded 2,700%.

Analysts believe that 51% of these attacks are behind the same actor.

Due to serious security problems, Vitalik Buterin recommended the Ethereum Classic team to transfer the project to the proof of stake algorithm.

Despite another reorganization, over the past 24 hours, the ETS rate has practically not changed and at the time of publication is $ 7.1 with a daily decline of 0.85%.

, Twitter / Ethereum Classic, Shutterstock

Ethereum Classic Hacked For The Second Time In A Week

Leave a Comment