Ethereum Classic
$4.50 -2.78%
ETC · 41w

Exchange Says $200K in Ethereum Classic Lost As Blockchain Attacks Continue - CoinDesk

Cryptocurrency exchange Gate.io said Tuesday that it will absorb the loss of roughly $200,000 worth of ethereum classic – about 40,000 ETC – in light of a series of blockchain history rewrites that continue to occur.

In a blog post, the exchange said it had confirmed the 51 percent attack – whereby an entity controls sufficient computing power to alter the network’s transaction history and double-spend coins – and identified three addresses that it said are tied to the attacker in question.

“Gate.io’s censor successfully blocked attacker’s transactions at the beginning and submitted them to the manual exam. Unfortunately, during the 51% attack, all the transactions looked valid and confirmed well on the blockchain. The examiner passed the transactions. It caused about 40k ETC loss due to this attack. Gate.io will take all the loss for the users,” the exchange said in its statement. The press-time price of ETC is $4.97 per token, according to CoinMarketCap.

The announcement corroborates similar claims made by crypto exchange Coinbase, which said Monday that it had identified double spends have occurred as a result of deep block reorganizations (reorgs) on the ethereum classic blockchain.

Information shared by Bitfly (Etherchain), Coinbase and Blockscout indicates that the attacks continue. “We updated our blog last night with additional attacks. We won’t resume ETC sends/receives until we feel that it’s safe to do so,” a representative for Coinbase said.

Speaking to CoinDesk, Bitfly CEO Peter Pratscher explained that although a number of reorganized blocks could be confirmed on the ethereum classic network, no analysis of the movement of transactions could yet be ascertained on their part to confirm or deny double spends.

On the other hand, Blockscout’s project lead Andrew Cravenho told CoinDesk that evidence of a double spend attack is “100 percent.”

Pointing to a reorg that occurred between block numb...

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