Saturday, June 18, 2016

Ethereum Hacked…Loses 20% Of Value In Minutes

From Zerohedge:
As Cryptcoinnews reports, Ethereum co-founder Vitalik Buterin has asked digital currency exchanges to “pause” ether and activity on the decentralized autonomous organization, or DAO, activity following a hack of the DAO smart contract address. As a reminder Ethereum is the blockchain platform that enabled the DAO’s creation.
The DAO is currently being drained of ethers in a still-ongoing breach (as of this morning) to the unknown attacker’s ETH address. The ongoing hack and possible theft, deemed as an “attack” on the DAO by Vitalik Buterin, has the co-founder of Ethereum issue a plea seeking digital currency exchanges to pause ether (ETH) and DAO transactions.
“The DAO is being attacked. It has been going on for 3-4 hours, it is draining ETH at a rapid rate. This is not a drill.
Amusingly, the attacker’s ETH address is still accumulating Ethereum’s token currency, with a balance of 3,559,374 ethers, currently valued at $59.05 million USD.
As a result, the price of Ethereum took a drastic dive this morning as news of the hack spread. Millions of ether are moving to an unkown address with some suggesting that it may be a recursive split hack. As shown in the chart below, the value of Ether has plummeted following the breach, losing over 20% of its value.
Growing pains, or something more, indicating that any electronic systems may be compromised given enough time?
At any rate, it seems best to not put too many eggs into a new technology’s basket until enough time has passed to let the cast and the mice fight to a draw.


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