21.July 2018 NEW YORKNow61°F

$32 million worth of Ethereum were stolen

$32 million worth of Ethereum were stolen

AdminJuly 26, 20171min717

Over the last six months, the new cryptocurrency Ethereum became one of the top competitors of Bitcoin due to its impressive surge in popularity, which increased its value tremendously.

As with anything that gains immense popularity, the promising currency became a target for numerous hacker attacks, and the most recent one was the worst.

A few days ago, a group of hackers exploited a loop in the popular Ethereum wallet – Parity. The problem was in the way the company implemented multi-sig wallets, which allowed thieves to steal 153,000 worth of Ether. At the time of the theft, this amount was valued at $32 million.

In a blog post on Parity’s website, the company states that the vulnerability has been fixed, but individuals with assets in multi-sig wallet created before 19th of July, were vulnerable to the theft.

The CEO of Swam City, Matthew, Carano, revealed that the funds held by his company in the multi-sig wallet were stolen on July 19. Other known companies affected by the theft include Aeternity and Edgeless Casino

For those unaware, let’s explain what a multi-sig wallet is. It’s a wallet that requires more than one signature to use its content, which should mean an enhanced security, but not this time. Those individuals, who use regular wallets were not in danger.

The theft is a big hit on Parity’s reputation as it is one of the most trusted wallets in the industry. The founder of the company is Gavin Wood, who is also one of the co-founders of Ethereum. The inside investigation of the company has shown that the users couldn’t have done anything to prevent this from happening.

An interesting fact is that a group of white hat hackers saved Parity’s users from losing millions of dollars by exploiting the vulnerability and draining the remaining funds worth of $75 million. Now, the group has promised to return the funds once the vulnerability is fixed.

The truth is that this isn’t the first theft of Ether for this week. Recently, the initial coin offering of an Ethereum-based startup went wrong when a  group of hackers stole $10 million worth of the cryptocurrency.

Another recent attack happened last June when hackers exploited another vulnerability and stole 3.6 million worth of Ether. This tremendous amount would be worth around $740 million today. To solve the issue, the management of the Ethereum decided to split it into two crypto coins: Ethereum and Ethereum Classic.

What would be the next move of the cryptocurrency’s management to keep the popularity high and will they manage to enhance their security? We are about to see in the upcoming months!

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