ETC hacker unlawfully obtained 54,200 coins from Gate.io cryptoexchange

ETC hacker unlawfully obtained 54,200 coins from Gate.io cryptoexchange
Jan 10, 2019 by Rico Wise

Two days ago, the cryptoexchange released a statement that the ETC blockchain suffered the 51 percent cyberattack, wherein a single entity overtakes more than half of the platform’s hash power, allowing it to rewrite its payment history and engage in double-spend trading. The exchange has also identified three hacker accounts. Per the official Gate.io statement, the attack took place within the timeframe of 0:40-4:20 UTC on January 7, with the transaction confirmations performed normally on the Ethereum Classic blockchain and rendered invalid subsequent to the rollback.

During the transfers, the ETC/USD trading rate was hovering around 4.90-5.25 USD.

At the start, Gate.io managed to successfully block the attacker’s transactions and send them to the manual examination. Nevertheless, in the course of the 51 percent cyberattack, all the transactions seemed valid and received confirmation on the platform. The examiner chose to pass the transactions, causing nearly 40 ETC loss because of this attack. All losses incurred by the customers of the cryptoexchange will be compensated by the Gate.io.

Coinbase, the USD cryptoexchange that first brought the 51 percent hack to the public attention has unveiled today that the hackers were still taking advantage of the ETC blockchain and managed to steal as many as 219,500 ETC coins, accounting for more than 1 million USD. Practically all cryptoexchanges have ceased their ETC deposits and withdrawals, but Gate.io exchange was the only one to report the losses.

So far, the situation leads to a scheme where the hackers can hold the stolen currency, but have no abilities to liquidate it for fiat.