Renowned crypto exchange Gate.io confirmed that it had lost about $220,000 USD priced Ethereum Classic [ETC] coins – around 4,000 ETC in number – due to the ‘continued manipulation‘ of the project’s blockchain network.
The exchange recently confirmed that the Ethereum Classic [ETC] blockchain was under the ‘51 percent attack‘ – within which one entity takes management of over more than half the network’s hash power that in return enables it to rewrite its transactional history and double-spend coins. The exchange has also identified 3 accounts the ETC network attackers.
“It all happened between 0:40, 7 Jan. 2019 and 4:20, 7 Jan. 2019 UTC for around four hours,” Gate.io stated in its ‘web-blog post‘. “All the transactions were confirmed usually on the ETC blockchain and thereby become invalid once the blockchain rollback.”
At the time of transaction, the ETC/USD price was somewhat in-between $4.90 USD and $5.25 USD.
Explaining further Gate.io added:
“Gate.io’s censor’s were successfully able to block attacker’s transactions at the start and submitted them to the manual examination. Unfortunately, in this 51 percent attack, all the transactions looked valid and were confirmed well on the blockchain. The examiner passed the transactions. It caused around 40k ETC loss during this attack. Gate.io would be taking all the loss for the users.”
Ethereum Classic Attack – A serious Concern
Another major crypto exchange Coinbase, brought the case of Ethereum Classic’s 51 percent attack before the press, revealing that the attackers were still exploiting the Ethereum Classic network and had siphoned-off 219,500 ETC coins priced over a million dollars. Blockscout, an associate Ethereum Classic blockchain explorer, confirmed reorganization attacks between block numbers 7261495 and 7261496. As per their information, a transaction containing 26,000 ETC was first spent throughout the mining of block number ‘7261492‘; an another identical dealing was again noted on block number ‘7261497‘.
Almost all the exchanges for now have halted their ETC deposits and withdrawals however none of them – except Gate.io – have revealed their losses. This situation whereby leads to a situation where the attackers are holding all the stolen ETC with no choices to liquidate them for fiat. Ideally, it is expected to lead towards a flat price action before the Ethereum Classic team comes up with an answer to this completely repeal the attack.
Finally ETC Developers Admitted Something Is Wrong
Ethereum Classic developer Donald McIntyre admitted they were watching a textbook 51 percent as well as double spend attack – an opinion that was refuted by Cody Burns, an another fellow ETC developer, who believed that there was a lot more area still left for the investigation.
“To be clear we are not trying to hide or downplay recent events,” the group declared in an official release. “Facts are facts and as the scenario develops we’ll soo get a full image of what truly looks like. Linzhi is testing ASICS. Coinbase reported double spends; both may be true.”
The team afterwards raised its interference tactics by asking exchanges to extend their block confirmation times.