Fun

Ethereum Classic 51% Attack: Okex Crypto Exchange Suffers $5.6 Million Loss, Contemplates Delisting ETC

News Feed - 2020-08-18 07:08:38

Ethereum Classic 51% Attack: Okex Crypto Exchange Suffers $5.6 Million Loss, Contemplates Delisting ETC


Cryptocurrency exchange Okex reveals it suffered the $5.6 million loss as a result of the double-spend carried out by the attacker(s) in Ethereum Classic 51% attack. Okex says it fully absorbed the loss as per its user-protection policy while insisting that the attack did not cause any loss to the platform’s users.


Also as part of its immediate responses to the attack, the OKEx team said the “exchange had suspended deposits and withdrawals of ETC to prevent further losses.”


A total of five accounts on the exchange had been used in the attack and now the Okex team says it has “suspended the five accounts to prevent further incidents.”


Immediately following the attack, ETC developers initially downplayed the event by characterising it as an “accident.” At the time, the developers doubted if any major double-spend attacks had occurred.


However, an investigation by a blockchain analysis firm later revealed the “accident” was, in fact, a 51% attack, and that $5.6 million had been stolen. At the same time, reports linking Okex wallets to the incident also surfaced.


Responding to these reports in a blog, the Okex team clarifies that the “exchange was only involved in that the attacker(s) used the exchange to purchase and trade ETC.”


The Okex team also believes the exchange was targeted probably because it “provides excellent ETC liquidity, seeing some of the largest ETC transaction volumes in the industry.”


The blog report suggests that “the attacker(s) likely calculated that they would be able to relatively easily and promptly trade large amounts of ETC on OKEx.”


Regarding more steps it will take, the Okex team said:


“Additionally — given OKEx’s responsibility to protect users from similar incidents that threaten the security of their funds — the exchange will consider delisting ETC, pending the results of the Ethereum Classic community’s work to improve the security of its chain.”


However, the blog post does not give a specific time frame when the ETC community is expected to improve this.


Meanwhile, in his comments on the attack, Tim Ismilyaev, CEO and Founder at Mana Security, says such incidents are “common for less popular blockchains, ETC can’t fix it without significant amendments into their architecture.”


Ismilyaev also offers his view on why Okex still suffered the loss even after the ETC team had advised exchanges to halt deposits and withdrawals soon after the attack. Ismilyaev explains:ETC’s advice was released after the attack occurred, so Okex couldn’t stop the withdrawal of stolen funds. Noteworthy, the attacker most likely knew how Okex risk management systems work. It allowed him to withdraw stolen funds without being detected. That’s why he deliberately traded assets only on OKEX rather than splitting funds across multiple exchanges to hedge the risks.


With one exchange, Kucoin having delisted ETC margin trading from its platform, the ETC team faces increased pressure to address the security challenges or face more delistings.


Can the ETC team solve the security challenges in time before another delisting? Share your thoughts in the comments section below.$5.6 Million Double Spent: ETC Team Finally Acknowledges the 51% Attack on NetworkSECURITY | Aug 6, 2020Single Miner Reorgs Ethereum Classic - Devs Report a Chain SplitSECURITY | Aug 1, 2020Tags in this story51% attack, Blockchain, Blockchain Analysis, Cryptocurrency Exchange, double spend, ethereum classic (ETC), funds security, Liquidity, Okex, Wallets


Image Credits: Shutterstock, Pixabay, Wiki CommonsSpot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Argentinian Senate Passes Bill That Would Tax Assets Held in Foreign Countries, Including Crypto
Argentinian Senate Passes Bill That Would Tax Assets Held in Foreign Countries, Including Crypto The Argentinian Senate has approved a bill that would allow the government to tax n
WazirX launches bounty program to recover stolen assets
Amaka Nwaokocha12 hours agoWazirX launches bounty program to recover stolen assetsThe exchange remains focused on addressing the impact on customer funds and ensuring the security and integrity of their platform.7945 Tot
Derek Andersen12 hours agoBlockchain could authenticate AI as crypto racks up court victories: Rep. EmmerU.S. Rep. Tom Emmer told an audience at Permissionless II that things are looking up for crypto and it’s time to
US Marshals Service Hires Custodian for Seized Cryptocurrencies — Over 185K BTC Confiscated, Sold so Far
US Marshals Service Hires Custodian for Seized Cryptocurrencies — Over 185K BTC Confiscated, Sold so Far The U.S. Marshals Service, a primary law enforcement a
Russians to Pay Fees on Digital Ruble Transactions, Central Bank Says
Russians to Pay Fees on Digital Ruble Transactions, Central Bank Says Users of Russia’s central bank digital currency are going to pay a fee for each transaction, a high-ran
Dogecoin Whales Bought Over 90 Million DOGE In 48H – Details
Este artículo también está disponible en español. Dogecoin is currently trading around $0.31, a level that has left investors in a state of uncertainty. The price has bee
Former Thai Central Bank Director Predicts Crypto Bubble Emerging in March
Former Thai Central Bank Director Predicts Crypto Bubble Emerging in March A former Bank of Thailand director has warned about an imminent crypto crash. “A cryptocurrency bu
Crypto Downturn Shakes Digital Collectible Markets as NFT Sales Slip 42% Lower Than Last Week
Crypto Downturn Shakes Digital Collectible Markets as NFT Sales Slip 42% Lower Than Last Week Non-fungible token (NFT) markets are starting to feel the pain from the crypto market
Bitcoin, Ethereum Technical Analysis: BTC Moves Below $30,000 on Monday, as US Dollar Rallies
Bitcoin, Ethereum Technical Analysis: BTC Moves Below $30,000 on Monday, as US Dollar Rallies Bitcoin started the week trading below $30,000, as the U.S. dollar strengthened during
Crypto Exchange Binance Ends Some Services in Singapore to Comply With Regulation
Crypto Exchange Binance Ends Some Services in Singapore to Comply With Regulation Binance is terminating some services in Singapore, including fiat deposit services and spot tradin
Coinrule Fundraises $700k to Expand Automated Trading to Tokenised Stocks
Coinrule Fundraises $700k to Expand Automated Trading to Tokenised Stocks PRESS RELEASE. Coinrule – a hyper-growth, automated trading platform based out of
Bitcoin STH Average Cost Basis At $90,950 — Why Is It Relevant?
Este artículo también está disponible en español. The Bitcoin price continues to dance within the newly formed $80,000 – $85,000 range, showing some level of indeci