CoinDash Hacked Within Three Minutes of ICO Offering
Posted by: Timothy Weaver on 07/19/2017 09:07 AM
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CoinDash was in the process of making their first ICO (Initial Coin Offering) when a cyber thief hacked their website and replaced the official wallet address with their own.
The thief made off with over $7 million worth of Ethereum. He hacked the website within three minutes after the ICO started.
The company has stated that they will reimburse those who sent money to the thief.
“The CoinDash Token Sale secured $6.4 Million from our early contributors and whitelist participants and we are grateful for your support and contribution. CoinDash is responsible to all of its contributors and will send CDTs reflective of each contribution. Contributors that sent ETH to the fraudulent Ethereum address, which was maliciously placed on our website, and sent ETH to the CoinDash.io official address will receive their CDT tokens accordingly,” the company says.
“During the attack $7 Million were stolen by a currently unknown perpetrator. […] We are still under attack. Please do not send any ETH to any address, as the Token Sale has been terminated,” the company notes on its website.
High-Tech Bridge CEO Ilia Kolochenko commented that “blockchain technology in isolation cannot assure additional security.”
“Many users, fooled by investors and so-called serial entrepreneurs, blindly believe that blockchain, particularly crypto-currencies, can make a digital revolution and provide an ‘unbreakable’ security. Unfortunately, this assumption is wrong and leads to a very dangerous feeling of false security. Blockchain technology can assure a very high level of data integrity, but we need to remember the numerous intertwined layers of modern technology stack, where one breached system or host can put the entire structure at risk,” Kolochenko said.
“Victims of this hack will quite unlikely get their money back as, technically speaking, it's virtually impossible. Moreover, law enforcement won't be able to help either in this case, except if it is an insider attack that can be investigated and prosecuted,” he concluded.
Source: Security Week
The thief made off with over $7 million worth of Ethereum. He hacked the website within three minutes after the ICO started. The company has stated that they will reimburse those who sent money to the thief.
“The CoinDash Token Sale secured $6.4 Million from our early contributors and whitelist participants and we are grateful for your support and contribution. CoinDash is responsible to all of its contributors and will send CDTs reflective of each contribution. Contributors that sent ETH to the fraudulent Ethereum address, which was maliciously placed on our website, and sent ETH to the CoinDash.io official address will receive their CDT tokens accordingly,” the company says.
“During the attack $7 Million were stolen by a currently unknown perpetrator. […] We are still under attack. Please do not send any ETH to any address, as the Token Sale has been terminated,” the company notes on its website.
High-Tech Bridge CEO Ilia Kolochenko commented that “blockchain technology in isolation cannot assure additional security.”
“Many users, fooled by investors and so-called serial entrepreneurs, blindly believe that blockchain, particularly crypto-currencies, can make a digital revolution and provide an ‘unbreakable’ security. Unfortunately, this assumption is wrong and leads to a very dangerous feeling of false security. Blockchain technology can assure a very high level of data integrity, but we need to remember the numerous intertwined layers of modern technology stack, where one breached system or host can put the entire structure at risk,” Kolochenko said.
“Victims of this hack will quite unlikely get their money back as, technically speaking, it's virtually impossible. Moreover, law enforcement won't be able to help either in this case, except if it is an insider attack that can be investigated and prosecuted,” he concluded.
Source: Security Week
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