Ethereum Classic 51% Assault: Okex Crypto Exchange Suffers $5.6 Million Loss, Contemplates Delisting ETC

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Cryptocurrency change Okex reveals it suffered the $5.6 million loss on account of the double-spend carried out by the attacker(s) in Ethereum Classic 51% assault. Okex says it totally absorbed the loss as per its user-protection coverage whereas insisting that the assault didn’t trigger any loss to the platform’s customers.

Additionally as a part of its rapid responses to the assault, the OKEx staff stated the “change had suspended deposits and withdrawals of ETC to forestall additional losses.”

A complete of 5 accounts on the change had been used within the assault and now the Okex staff says it has “suspended the 5 accounts to forestall additional incidents.”

Instantly following the assault, ETC builders initially downplayed the occasion by characterising it as an “accident.” On the time, the builders doubted if any main double-spend assaults had occurred.

Nevertheless, an investigation by a blockchain evaluation agency later revealed the “accident” was, actually, a 51% assault, and that $5.6 million had been stolen. On the similar time, studies linking Okex wallets to the incident additionally surfaced.

Responding to those studies in a weblog, the Okex staff clarifies that the “change was solely concerned in that the attacker(s) used the change to buy and commerce ETC.”

The Okex staff additionally believes the change was focused in all probability as a result of it “supplies glorious ETC liquidity, seeing a number of the largest ETC transaction volumes within the business.”

The weblog report means that “the attacker(s) doubtless calculated that they might be capable to comparatively simply and promptly commerce massive quantities of ETC on OKEx.”

Relating to extra steps it can take, the Okex staff stated:

“Moreover — given OKEx’s accountability to guard customers from comparable incidents that threaten the safety of their funds — the change will contemplate delisting ETC, pending the outcomes of the Ethereum Classic group’s work to enhance the safety of its chain.”

Nevertheless, the weblog publish doesn’t give a particular timeframe when the ETC group is anticipated to enhance this.

In the meantime, in his feedback on the assault, Tim Ismilyaev, CEO and Founder at Mana Safety, says such incidents are “widespread for much less in style blockchains, ETC can’t repair it with out vital amendments into their structure.”

Ismilyaev additionally affords his view on why Okex nonetheless suffered the loss even after the ETC staff had suggested exchanges to halt deposits and withdrawals quickly after the assault. Ismilyaev explains:

ETC’s recommendation was launched after the assault occurred, so Okex couldn’t cease the withdrawal of stolen funds. Noteworthy, the attacker most definitely knew how Okex threat administration methods work. It allowed him to withdraw stolen funds with out being detected. That’s why he intentionally traded property solely on OKEX slightly than splitting funds throughout a number of exchanges to hedge the dangers.

With one change, Kucoin having delisted ETC margin buying and selling from its platform, the ETC staff faces elevated strain to deal with the safety challenges or face extra delistings.

Can the ETC staff remedy the safety challenges in time earlier than one other delisting? Share your ideas within the feedback part beneath.

Picture Credit: Shutterstock, Pixabay, Wiki Commons

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