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

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

Cryptocurrency change Okex reveals it suffered the $5.6 million loss on account of the double-spend carried out by the attacker(s) in Ethereum Classic 51% assault. Okex says it totally absorbed the loss as per its user-protection coverage whereas insisting that the assault didn’t trigger any loss to the platform’s customers.

Also as a part of its speedy responses to the assault, the OKEx workforce mentioned the “change had suspended deposits and withdrawals of ETC to stop additional losses.”

A complete of 5 accounts on the change had been used within the assault and now the Okex workforce says it has “suspended the 5 accounts to stop additional incidents.”

Immediately following the assault, ETC builders initially downplayed the occasion by characterising it as an “accident.” At the time, the builders doubted if any main double-spend assaults had occurred.

However, an investigation by a blockchain evaluation agency later revealed the “accident” was, the truth is, a 51% assault, and that $5.6 million had been stolen. At the identical time, studies linking Okex wallets to the incident additionally surfaced.

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Responding to those studies in a weblog, the Okex workforce clarifies that the “change was solely concerned in that the attacker(s) used the change to buy and commerce ETC.”

The Okex workforce additionally believes the change was focused in all probability as a result of it “offers wonderful ETC liquidity, seeing among the largest ETC transaction volumes within the business.”

The weblog report means that “the attacker(s) possible calculated that they’d be capable of comparatively simply and promptly commerce massive quantities of ETC on OKEx.”

Regarding extra steps it would take, the Okex workforce mentioned:

“Additionally — given OKEx’s duty to guard customers from related incidents that threaten the safety of their funds — the change will take into account delisting ETC, pending the outcomes of the Ethereum Classic group’s work to enhance the safety of its chain.”

However, the weblog publish doesn’t give a selected timeframe when the ETC group is anticipated to enhance this.

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Meanwhile, in his feedback on the assault, Tim Ismilyaev, CEO and Founder at Mana Security, says such incidents are “widespread for much less standard blockchains, ETC can’t repair it with out important amendments into their structure.”

Ismilyaev additionally provides his view on why Okex nonetheless suffered the loss even after the ETC workforce had suggested exchanges to halt deposits and withdrawals quickly after the assault. Ismilyaev explains:

ETC’s recommendation was launched after the assault occurred, so Okex couldn’t cease the withdrawal of stolen funds. Noteworthy, the attacker most probably knew how Okex danger administration methods work. It allowed him to withdraw stolen funds with out being detected. That’s why he intentionally traded belongings solely on OKEX moderately than splitting funds throughout a number of exchanges to hedge the dangers.

With one change, Kucoin having delisted ETC margin buying and selling from its platform, the ETC workforce faces elevated stress to handle the safety challenges or face extra delistings.

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Can the ETC workforce remedy the safety challenges in time earlier than one other delisting? Share your ideas within the feedback part under.

The publish Ethereum Classic 51% Attack: Okex Crypto Exchange Suffers $5.6 Million Loss, Contemplates Delisting ETC appeared first on Bitcoin News.

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