Hacker steals $7.4 Mil­lion in ethereum Dur­ing coin­dash ico

Technowize Magazine - - Haute Money -

Coin­dash, a blockchain startup fo­cus­ing on cryp­tocur­rency so­cial trad­ing and port­fo­lio man­age­ment plat­forms, was sched­uled to be­gin its Ico on July 17, 2017. The very same morn­ing, it sent out an ur­gent warn­ing to in­vestors re­gard­ing al­leged hack­ing of its cy­ber se­cu­rity. The e-trade for blockchain was hacked on Mon­day and $7.4 mil­lion was stolen from in­vestors try­ing to par­tic­i­pate in coin­dash Ico.

coin­dash Ico went ter­ri­bly wrong

The un­known hacker stole $7.4 mil­lion worth of Ethereum in just un­der three min­utes. At the time of the coin­dash Ico, the e-trade for blockchain posted a string of char­ac­ters which rep­re­sented its wallet ad­dress for in­vestors. Ap­par­ently, the hacker tricked users by re­plac­ing the of­fi­cial Ethereum ad­dress to a fraud­u­lent Ethereum ad­dress on the com­pro­mised web­site. Early par­tic­i­pants then sent ETH to the fraud­u­lent Ethereum ad­dress rather than the coin­dash’s of­fi­cial ad­dress.

coin­dash has now left a warn­ing on its to­ken fund­ing page ad­vis­ing in­vestors to stop send­ing funds. Its fund­ing page reads:

“This is an emer­gency mes­sage de­liv­ered to you in or­der to stop you from send­ing your money to an unau­tho­rized ETH ad­dress. It seems like our To­ken Sale page was tam­pered and the send­ing ad­dress

was changed. Please stop from send­ing your funds to any of the ad­dresses un­til we say oth­er­wise. We are cur­rently ex­am­in­ing the sit­u­a­tion and will shortly send fur­ther in­struc­tions.”

coin­dash Ico was sched­uled to last 28 days or un­til it reached a $12 mil­lion limit. The plat­form said it raised $6.4 mil­lion from keen in­vestors. A rapid surge in prices of coins of Ethereum, around $300 from $8 at the start of the year. This surge had caught the fancy of many in­vestors. Ac­cord­ing to coin­mar­ket­cap.com, Ether (ETH) traded at $174.88 on Mon­day.

one Red­dit user had in­formed coin­dash about their slack three days be­fore the Ico. It looks like coin­dash chose to take it lightly or not ac­knowl­edge it at all.

Mean­while, skep­ti­cal in­vestors now be­lieve that the peo­ple be­hind the project are scam­mers. This is prob­a­bly be­cause coin­dash didn’t ac­tu­ally whitelist their so­lid­ity code be­fore the Ico. In­vestors have ev­ery rea­son to draw sus­pi­cion on coin­dash and its founders. Alon Muroch, the ceo and co-founder of coin­dash, was a lead de­vel­oper for an old com­pany get­gems which has an Ico and scammed $1 mil­lion from ini­tial in­vestors.

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