The popular Exchange Coinbase cryptocurrency has suspended all transactions of Ethereum Classic (ETC) – the original version of Ethereum’s unrelated network – on its trading platforms, other products and services after the discovery of a potential attack on the network. cryptocurrency allows someone to spend the same digital coins. twice.
Why does this attack concern? The theft led to a loss of 1.1 million dollars from the Ethereum Classic Digital Currency. The price of digital currency immediately fell after the announcement of news.
On Monday, Coinbase reported that it had identified the “massive reorganization of the chain” of the Ethereum Classic blockchain (or 51% of the attack on the network), which means that the person controls most of the miners on the network (more than 50%). changed transaction history.
Also Read: New GhostDNS, DNS Changer Botnet Hijacked Over 1,00,000 Routers
After the reorganization of the Ethereum blockchain, the attackers managed to “spend twice” about 219,500 FTE, extracting previously used fragments from legitimate recipients and transferring them to new objects chosen by the attackers (usually a portfolio under their control). ,
“We have seen repeated deep reorganizations of the chain of Ethereum Classic networks, most of which contained double costs,” said Mark Nesbitt, security engineer at Coinbase, in his blog. “The total cost of the double costs that we have seen so far is 219,500 FTEs (~ 1.1 million US dollars).”
Coinbase determined the reorganization of the Ethereum Classic chain of channels on January 5, when the company stopped the chain of ETC payments to protect its customers’ funds and exchange the cryptocurrency itself.
The update status.coinbase.com reads: “Due to the unstable network situation in the Ethereum Classic network, we temporarily turned off all sendings and receptions for ETC. Buying and selling are not carried out. All other systems work fine. “
It should be noted that this incident was not a one-time event, since the attacks apparently continued.
Cryptocurrency Double Attack to Conduct
Coinbase initially identified nine reorganizations with double costs of 88,500 FTEs (about $ 460,000), but the latest update on her blog suggests that at least 12 additional reorganizations included double costs, a total of 219,500 FTEs (almost 1, 1 million US dollars).
At that time, it was not known exactly who the attackers were targeting, but Coinbase assured its customers that the cryptocurrency switch itself was not the target of these attacks and that customer funds were not allocated. was not lost.
At first, Ethereum Classic rejected Coinbase’s claims, saying that the ETC network seems to be “working fine”, but after a few hours it confirmed “51% attack success” on the Ethereum Classic network with “multiple” block realignments.
Also Read: Free Thanatos Ransomware Decryption Tool Released
Ethereum Classic, however, said that Coinbase did not contact ETC personnel regarding the attack and that the investigation was “a process in the process”.
Since such attacks against highly mined cryptocurrency networks, such as Bitcoin and Ethereum, are extremely difficult, if not impossible, the attackers chose small-capitalized cryptocurrencies such as Ethereum Classic, Litecoin Cash, Bitcoin Gold, ZenCash (now Horizon) and Verge.
Ethereum Classic, created in June 2016, is the 18th largest cryptocurrency with a market capitalization of more than half a billion dollars (about 539 million dollars), which makes it the main target for attackers.