Yesterday, cryptocurrency platform CoinDash launched an Initial Coin Offering (ICO). While CoinDash raised $6.4 in Ether investments, a hacker managed to steal millions of dollars from investors. The thief managed to change the Ethereum wallet address to syphon investments into their own wallet. In just three minutes, CoinDash investors lost over $7 million-worth of Ether.
Website has been hacked.
— SSV Network (@ssv_network) July 17, 2017
“A Currently Unknown Perpetrator”
CoinDash says that any investor that accidentally sent fund to the fraudulent address will still receive tokens. However, it will not pay tokens for any transaction that occurred after the CoinDash website shut down. The company says:
“It is unfortunate for us to announce that we have suffered a hacking attack during our Token Sale event. During the attack $7 Million were stolen by a currently unknown perpetrator. 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. Transactions sent to any fraudulent address after our website was shut down will not be compensated.
This was a damaging event to both our contributors and our company but it is surely not the end of our project. We are looking into the security breach and will update you all as soon as possible about the findings.
The CoinDash vision, product and team will continue to live on. We will be fast to recover and we will create the future of trading.”
CoinDash reminds users that its website is still under attack and instructs them not to send Ether to its addresses.
If you sent ETH to the hacker address, please fill this form.https://t.co/XCD8FngyJt
— SSV Network (@ssv_network) July 17, 2017
What is an Initial Coin Offering?
An ICO is an unregulated cryptocurrency sale to facilitate startup investment. The startup raises quick, easy funds while investors potentially help increase the value of their crypto-wallets. Like crowdfunding, though, agreements between startup and investor depend on reaching a funding goal. Otherwise, the startup returns any funds invested.The unregulated nature of ICOs, though, leaves the likes of CoinDash vulnerable to such thefts.
What Now?
The unregulated nature of ICOs, though, leaves the likes of CoinDash vulnerable to such thefts. The culprit is unknown and is sure to remain so. Unfortunately, tracking cryptocurrency theft is notoriously difficult.
Another reason why cryptocurrency should disappear; it’s unregulated so it is quite susceptible to manipulation.