Crypto exchange lost $ 500,000 due to AurumCoin 51% offense


crypt exchanges 51% attack

A little known cryptocurrency called AurumCoin (AU) said it was hit by 51 percent of the attack and Crypto exchange Cryptopia, where the cryptocurrency is listed, lost 15,752.26 UA (about $ 550,000 at the time of writing this article). However, the cryptocurrency has moved the blame on Cryptopia. On the AurumCoin website, he stated that he is not responsible for anyone as it is an open source distributed currency. Cryptopia, on the other hand, has not yet recognized any loss.

AurumCoin claims to have suffered a 51% attack

AurumCoin (AU) is presumably a gold-based cryptocurrency, in which each token is anchored to the value of 24K pure gold. AurumCoin claims to support each UA with 0.75 grams of gold stored in safe deposits around the world. He has managed his blockchain since 2014, where AU is threatened (despite its alleged gold pegging) with a hard cap of 300,000 coins.

Moreover, the price of AU did not see any stability that would have been expected from a cryptocurrency really supported by gold. AurumCoin (AU) is currently priced at $ 35.01, up 72 percent in the last 24 hours. Only in the last week, AU has increased by almost 400% from $ 9.50 to the current price.

What's a 51 percent attack?

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Source: AurumCoin website

A 51% attack is when a hacker is able to take control over a cryptographic network with over 51% of his hash percentage. It would give them the authority to control transactions, including the arrest of new transactions, the reversal of transactions and double the expendable currencies. In the past it has been demonstrated how easy it is to perform a 51% attack on small cryptocurrencies.

With a market capitalization of only $ 10 million, AurumCoin was an easy target. The hacker sent 15.752,26 AU to Cryptopia and sold it for a different cryptocurrency. Once the transaction ended, the hacker would use his superior hash power to reverse the transaction, as if it never happened. Based on New Zealand, Cryptopia is a popular cryptocurrency exchange known for listing a variety of small-cap coins like these.

AurumCoin shifts the blame on cryptopia

Although cryptophan did not recognize the attack, AurumCoin published the following statement at the top of their website:

"The Aurum coin network (AU) has been compromised (51% attack), a total of 15,775.26 AU is missing from the Cryptopia portfolio (exchange of .The Aurum coin network is not responsible Nobody, like the bitcoin network, is an open source distributed cryptographic currency.What is worse is that the exchange of crypts does not admit it.This is not the way to solve this problem. "

It is not clear what AurumCoin expects cryptopia to do. He constantly insisted that the encryption had been hacked. However, the fact is that AurumCoin did not have the hash rate to prevent a 51% attack that led to cryptopia losing over half a million dollars. Recently, Bittrex canceled Bitcoin Gold after losing some funds due to a similar 51% attack.

Editor's note: CCN has contacted Cryptopia to confirm whether it has lost funds as a result of a double-expense attack. According to the exchange website, no AU transactions were processed by the beginning of October, when the token markets were stopped for an "infrastructure upgrade".

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