Ethereum Classic Hacked For The Second Time In A Week

Ethereum Classic Hacked For The Second Time In A Week

Bitfly and Binance today reported another 51% attack and 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 to the exchanges temporarily block the ability to deposit and withdraw cryptocurrency.

 

Today’s attack resulted in 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 the double spending of more than 800 thousand ETC worth about $ 5.6 million.

Ethereum Classic Hacked For The Second Time In A Week

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. It is estimated that only about 17.5 BTC or $ 204 thousand were spent on the attack, while the profitability exceeded 2700%.  

Analysts believe the same entity is behind these two attacks 51%.

because of 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 last 24 hours the ETS rate practically unchanged and at the time of publication is $ 7.1 with a daily decrease of 0.85%.

text: Ivan Malichenko, photo: Twitter / Ethereum Classic, Shutterstock

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