Ethereum Classic Losses Top $1 Million after 51% Attack
Losses stemming from a continuing 51 percent attack against Ethereum Classic have breached the million-dollar barrier, according to updated figures published by cryptocurrency exchange Coinbase. At the time, Coinbase announced it had recognized multiple instances where the attacker exploited that majority hashrate to execute double spend attacks, which are generally directed against cryptocurrency exchanges (Coinbase stated it was not targeted).
Now, Coinbase engineers have released updated data that suggests that the attackers had executed “continued deep reorganizations of their Ethereum Classic blockchain, the majority of which contained double spends.” Altogether, the firm said,”value of this double spends that we’ve observed thus far is 219,500 ETC (~$1.1M).”
Thus far, just cryptocurrency exchange Gate.io has come forward to confirm it dropped funds to the Ethereum Classic hacker. According to a statement published on Tuesday, the offender absconded with 54,200 ETC, worth roughly $200,000 at the present exchange rate.
From the post:
Gate.io has raised the ETC confirmation number to 500 and launched a new strict 51% detect for enhanced protection. However, we suggest the ETC dev team and the community build a new consensus mechanism (PoS for example) to better protect ETC network from 51% attack.
Unexpectedly, the ethereum classic price has seen very little movement within the previous 24 hours, declining just 3.82 percent from the US dollar and 4.16 percent against bitcoin. This fact wasn’t lost on many observers, many of whom noticed that a selection of cryptocurrencies exploited by 51 percent strikes have strangely managed to retain substantial economic value after attacks have exposed security vulnerabilities.