Crypto Hackers Steal Over $1.5M of Ethereum Classic Via ‘Double Spending’, Coinbase Ceases ETC Trading
Ethereum Classic (ETC), a byproduct of the globe’s second most famous cryptoasset, has been hit by several big attacks on its blockchain technology network. Anonymous hackers vanished with over $1.5 million (approx. £1.2m) by conducting a 51% attack on Etereum Classic’s rudimentary technology. At the time of press, ETC is exchanging hands at $4.68 USD (-7.15%).
“Coinbase detected a deep chain reorganisation of the ETC blockchain that included a double spend,” the blog post indicated. “In order to secure clients’ funds, we immediately paused interactions with the ETC blockchain.”
Damages ETC Traders’ Trust
A deadly 51% attack is technically
possible on any crypto, however, it is very hard to fulfil.
It requires taking charge of more than ½ of the network’s mining computer power, which is utilized to both produce new units of the cryptoasset and confirm transactions on the network.
This enables a ‘double spend,’ by which whatever person is in control of the network in question can successfully spend units of the cryptoasset twice (double).
The white paper revealed:
“If a majority of computer power is controlled by honest nodes, the honest chain will develop the fastest and surpass any contending chains.”
ETC is presently ranked the 18th most valuable cryptoasset on
coinmarketcap, nevertheless, the up-to-the-minute attack is likely to scathe investors’ and traders’ trust in the cryptoasset (ETC).
However, the ETC team revealed on Twitter that rising hashrate might be tied to the testing of new 1,400/Mh ethash devices by ASIC creator Linzhi. However, they acknowledged that double spends could also happen:
“Linzhi is testing ASICS. Coinbase reported double spends; both may be true.”
In the meantime, Linzhi’s director of operations, Wolfgang Spraul,
denied the allegations in a tweet which was later deleted, saying that they might itself be part of (or behind) the malicious attack.