Hackers Steal Staggering $32 Million In Ethereum
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.