Coinbase delays Ethereum Classic transactions after two 51% assaults

Coinbase will delay all Ethereum Classic (ETC) transactions after the community suffered two 51% assaults final week, with hackers stealing tens of millions in ETC.

The San Francisco-based change mentioned on a tweet the affirmation time for ETC despatched to Coinbase and Coinbase Pro is now set at 2 weeks after the current community assaults. It added they had been monitoring the state of affairs.

The determination got here after hacker/s stole over $5 million value of Ethereum Classic — unfold over two assaults — by gaining management over nearly all of the community and performing a block reorg.

Ethereum Classic attacked over 4 days

According to an investigation by on-chain agency Bitquery this week, Ethereum Classic’s second 51% assault on Thursday noticed hackers reorganize over 4,236 blocks (value $3.Three million) and efficiently double-spend $1.68 million value of ETC.

The attacker pocketed an extra 14,200 ETC by way of block rewards through the occasion. The hashpower required for the assault was obtained from Nicehash DaggerHashimoto — the identical as the primary assault — mentioned Bitquery.

Thursday’s occasion adopted an earlier assault on August 1, which was considered a software program error on the time. The report estimates the hacker reaped greater than a 2,800% return for his efforts, having spent roughly 17.5 Bitcoin (BTC) value $192,000 on renting hash energy from Nicehash to execute the assault.

Meanwhile, Bitquery said the assault took between July 31 and August 1, however remained detected for “several days as a result of intricate planning and knowledge of the Ethereum Classic protocol.”

The report said:

“The hacker began the attack by transferring ETC from an exchange wallet under its control, and then back again.”

Criminal motion and an OKEx connection

Ethereum Classic Labs, the core improvement group behind Ethereum Classic, mentioned Friday it engaged legislation agency Kobre & Kim to analyze and pursue strict prison prices towards the attackers behind the 51% assaults, based on a press launch.

It mentioned over eleven malicious transactions originated from a single tackle inserted into the Ethereum Classic blockchain over the assault, permitting greater than 807,000 ETC to be double-spent.

Bitquery added the attackers’ addresses could also be hosted on both OKEx or one of many change’s affiliated corporations. This has not been confirmed by the change.

Meanwhile, Ethereum Class Labs mentioned organizations can make the most of a number of measures to stop additional disruption to the community:

Investigations are ongoing.

Posted In: Ethereum, Hacks

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