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Hackers Steal Staggering $32 Million In Ethereum

Scorpio

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#1
Hackers Steal Staggering $32 Million In Ethereum

Anna Golubova
Thursday July 20, 2017 15:16

Kitco News



Editor's Note: Kitco readers, have your say! Check out our newest feature – KITCO CHAT! – where you can share your comments and ask questions directly to us.



Image Courtesy of Flickr user BTC Keychain

(Kitco News) -
In a massive security breach on Wednesday, hackers got their hands on 153,000 units of cryptocurrency ethereum, worth around $32.6 million. This was the biggest theft of the cryptocurrency so far and comes just a couple day after $7 million worth ethereum was stolen.

The ether tokens, illegally depleted Wednesday, came from three of the largest Ether multi-signature wallets: Edgeless Casino, Aeternity, and Swarm City, according to media reports.

Hackers exploited a vulnerability in Parity's multi-signature wallet to gain access to the digital currency.

The theft came to light around noon on Wednesday, Swarm City communications officer Matthew Carano said.

“We alerted the Ethereum Foundation and multiple developer groups immediately. Together, we were able to determine that malicious actors had exploited a flaw in the Parity Multisig code, which allowed a known party to steal over 153,000 ether from several projects including Edgeless Casino, Aeternity, and Swarm City," Carano said in a blog post.

Following the news of the breach, ethereum’s price tumbled to a low of around 138 from $235.

According to Kitco.com, aggregated cryptocurrency charts, ethereum has managed to its reverse some of its losses and was trading around $224 level at the time of publication.

Reportedly, the vulnerability in the Parity’s code, which produces digital wallets for users to keep their funds in.

The method Parity uses is usually considered safe since it adds an additional layer of security by requiring a second user to sign a transaction before it is added to the blockchain.

Founder and CTO of Parity, Gavin Wood, published a security alert warning all users to move their funds somewhere more secure while the problem is resolved.

“There is an effort by the foundation underway to secure funds in other wallets to prevent any further compromises,” Wood said.

The so-called White Hat Group has also been working to recover the stolen funds.

“If you hold a multisig contract that was drained, please be patient. We will be creating another multisig for you that has the same settings as your old multisig but with the vulnerability removed and we will return your funds to you there,” the group said in a Reddit post.

Wednesday’s cyber theft comes just days after $7 million worth of ether tokens was stolen on Monday.

By Anna Golubova
For Kitco News

agolubova@kitco.com

www.kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

http://www.kitco.com/news/2017-07-20/Hackers-Steal-Staggering-32-Million-In-Ethereum.html
 

Scorpio

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#2
If you hold a multisig contract that was drained, please be patient. We will be creating another multisig for you that has the same settings as your old multisig but with the vulnerability removed and we will return your funds to you there,
too funny, the supposed 'currency' with multi sig requirements, stability, etc

first was hacked for millions

second we will return your kibbles and bits to your acct (wtf they getting those from?)

thirdly, recovers massive losses in basically 10 mins

yeah, that is something I want to be involved in..................
 

andial

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#3
My opinion i have no horse in this race but a good bet woud be to buy on bad news with these alt currencies.
 

Joe King

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#4
My opinion i have no horse in this race but a good bet woud be to buy on bad news with these alt currencies.
Seems that way. Anyone having bought btc during last weeks so-called "collapse" would be up $900 as of today.

Au/Ag should do so well. Maybe someday.


Edited to add: July 16th $1865. Today, $2772
 
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andial

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Seems that way. Anyone having bought btc during last weeks so-called "collapse" would be up $900 as of today.

Au/Ag should do so well. Maybe someday.
Yes There seems to be a constant underlying strong demand that overcomes short term bearish news. Big plus is it is not traded on the comex or any other "market" that is being overseen by a government so it trades with testicular fortitude, unlike neutered metals.
 

Joe King

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Big plus is it is not traded on the comex or any other "market" that is being overseen by a government so it trades with testicular fortitude, unlike neutered metals.
The way so many (even here) poo-poo the idea of cryptos's, it seems most people like and want .gov regulatory over-sight of their financial lives.
 

Uglytruth

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#8
eems that way. Anyone having bought btc during last weeks so-called "collapse" would be up $900 as of today.
OK so I hack the currency, buy the bad news & profit from it in a week. Sorry but my hacking skills are not my strong suit.
 

Joe King

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#9
OK so I hack the currency, buy the bad news & profit from it in a week. Sorry but my hacking skills are not my strong suit.
BTC wasn't hacked. That's what has gone up by $900 in the last 6 days. Think about that. $900 in 6 days. Not too shabby for something that's allegedly "collapsed" in price.
 

Cigarlover

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#10
The way so many (even here) poo-poo the idea of cryptos's, it seems most people like and want .gov regulatory over-sight of their financial lives.
No, I want a stable currency. I want my savings stashed away in something that has value and will still have the same purchasing power when I need it if I need it.
If I had an investment portfolio then cryptos would play a role in it. 5-10% perhaps. Honestly though when I was investing I didnt invest in the penny stocks. BTC would have been in that category when it first came out. It seems to have busted out of that category now and is leading the pack.
As a currency though it fails. If I had accepted it as payment at 3k and then needed the money at 2400 I would have lost a good amount of my purchasing power in a very short time. Now it goes back up. Great for the speculation game but not as a currency.
 

Joe King

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No, I want a stable currency. I want my savings stashed away in something that has value and will still have the same purchasing power when I need it if I need it.
You seem to not want it to be able to find its own price point by discovery, which is what it is doing now.
IMHO, it seems unrealistic to expect a brand new market to behave as though it were an older mature market.
...and if you were a merchant and had accepted btc @$3k, you would have re-sold it immediately afterwards. Not days later after it had already fallen.

You're right though, that it really does not behave at this point how a stable currency should, and a lot of that is due to so much speculation going on.
...but again, this is just part of its growing pains, so to speak. The stability will come when its priced far higher than it is right now. At which point many will wish they'd bought @$3k
 

the_shootist

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#12
BTC wasn't hacked. That's what has gone up by $900 in the last 6 days. Think about that. $900 in 6 days. Not too shabby for something that's allegedly "collapsed" in price.
That much movement in such a short time makes me nervous Joe
 

Joe King

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That much movement in such a short time makes me nervous Joe
That may be, but it's certainly not proof of a bubble. It supposedly collapsed last week. What happened? Do true bubbles grow, collapse and re-grow in the span of a week?
...but perhaps we need gov regulation and bitcoin etf's to smooth things out?

What you are witnessing is a free market of buyers and sellers, each acting in what they feel is their own best interests. That market just happens to be small enough that big moves are a part of it. It's like Ag on steroids.
 

the_shootist

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That may be, but it's certainly not proof of a bubble. It supposedly collapsed last week. What happened? Do true bubbles grow, collapse and re-grow in the span of a week?
...but perhaps we need gov regulation and bitcoin etf's to smooth things out?

What you are witnessing is a free market of buyers and sellers, each acting in what they feel is their own best interests. That market just happens to be small enough that big moves are a part of it. It's like Ag on steroids.
I don't mean to suggest that any government involvement is good at any level. It's not a bubble that scares me, it's the wild swings, the instability. I work to hard for my money to gamble it in that arena. I also don't attempt to advise anyone NOT to get in on crypto. It's just not for me
 
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GOLDBRIX

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#15
Hackers Steal Staggering $32 Million In Ethereum
I have difficulties wrappin my head around crypto and this just adds to my wariness.
 

Joe King

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#16
I have difficulties wrappin my head around crypto and this just adds to my wariness.
This is part of the learning process. Over the course of time, the various crypto's will have their respective strengths and weaknesses tested. As problems appear, they'll be fixed or another one that doesn't have that flaw will take its place. Ie: the market will sort itself out as time goes on.
...but in this case it wasn't even the crypto but rather wallet software that was compromised.

Supposedly the victims are getting their coin back? If so, that potentially makes it safer than some people would otherwise try to say it is.

If your bank were broken in to and all the stuff stolen from your SDB, wouldn't it be nice if there were a group of people out there who could get hot on the thieves trail and get it back for you? Be pretty cool if something like that existed, huh? Here's a link to the address that has the recovered funds. https://etherscan.io/address/0x1dba1131000664b884a1ba238464159892252d3a
 

Buck

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#17
Supposedly the victims are getting their coin back? If so, that potentially makes it safer than some people would otherwise try to say it is.
Where do these "replacement" cryptos come from?
 

Usury

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#18
I find really interesting that as soon as BTC becomes hard to mine, they just roll out another one....and another...and another. Doesn't seem any different than fiat that can be mass-printed at will to me.
 

Joe King

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Where do these "replacement" cryptos come from?
Ok, upon further review I think we all mis-understood. Apparently it's not the stolen coins that are being returned.

What happened is that other wallets that were vulnerable to the exploit were emptied by the white hat group prior to those wallets being exploited. The ones who lost the $32million in eth still lost it as their wallets had already been exploited.
...but it could have been much worse had they not done that. Those Eth is what is being returned to secure wallets.
 

the_shootist

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Ok, upon further review I think we all mis-understood. Apparently it's not the stolen coins that are being returned.

What happened is that other wallets that were vulnerable to the exploit were emptied by the white hat group prior to those wallets being exploited. The ones who lost the $32million in eth still lost it as their wallets had already been exploited.
...but it could have been much worse had they not done that. Those Eth is what is being returned to secure wallets.
That sounds a lot like what the Fed does when they need to print more money
 

Joe King

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#22
I find really interesting that as soon as BTC becomes hard to mine, they just roll out another one....and another...and another. Doesn't seem any different than fiat that can be mass-printed at will to me.
That's a free market. Ie: anyone can throw their hat in the ring. Over the course of time, the good bad and ugly amongst them will be sorted out with only the good surviving.
...but that's like a lot of markets when they first start out.

Look at cars, for example. 100 years ago there were many many manufacturers of cars. Over the years though, the list was whittled down to the few we have today. How did that happen? To a very large degree, market forces.
List of US auto makers. https://en.wikipedia.org/wiki/List_of_automobile_manufacturers_of_the_United_States
List of defunct US auto makers. https://en.wikipedia.org/wiki/List_of_defunct_automobile_manufacturers_of_the_United_States
The lower list of defunct mfgs goes on for pages, with most listed as existing during the early 20th Century. Pick the wrong one and ya might've gotten a dud that hardly anyone ever heard of. Otherwise they'd have likely survived.

Similar applies to the cryptos today. Some will survive, most probably won't. We won't know which ones will do what until the market has had time to mature a bit and sort itself out.
 

Joe King

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#23
That sounds a lot like what the Fed does when they need to print more money
Nothing more was created. It's the same coin.

It'd be like if there were a hack on the federal reserve system and before the thieves could steal everyones money from their accounts, the fed came in and emptied all the other accounts that had not yet been drained by the bad guys and then held those funds in a separate account until they could be returned to their rightful owners via new secure accounts that were not vulnerable to exploit used by the bad guys.
 

Usury

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#24
Joe, not sure what part of "gold is money" you do not understand. SMH
 

Uglytruth

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#26
Large parts of the world only have power part time or very limited power. How are they going to participate in this financial "revolution"?

If the power goes off in the US these people freak out & clean out stores in minutes.
 

Mujahideen

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#27
Large parts of the world only have power part time or very limited power. How are they going to participate in this financial "revolution"?

If the power goes off in the US these people freak out & clean out stores in minutes.
And gold will be worth squat.

Guns and ammo are money in that scenario.

Choose your situation, pick your Curren$y.
 

Buck

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#29
You should see the basket I have for my ammo eggs:
upload_2017-7-22_9-20-30.jpeg
 

Usury

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#30
That's why you never put all your eggs in one basket
I agree...but you can believe my baskets will be real, tangible and able to be used without power. And not able to be stolen from
My possession from around the world by a few keystrokes.