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Reportedly, a cybercriminal returned $ 100,000 of Ethereum Classic tokens to an exchange of Gate.io cryptocurrencies. If this sounds generous to you, it is only 10 percent of the loot that is still with cyber-attackers who have stolen over 200,000 Ethereum Classic tokens, which amounts to approximately $ 1.1 million.
Despite heavy losses, Gate.io bravely agreed to take them on behalf of its customers. A move that could have probably touched the thief so much that he returned part of the booty.
L & # 39; attack
It is said that the problems were noted by the Exchange around 5th January 2019 and significant changes were identified in the Blockchain around January 8thth, 2019. By 10 Januaryth, 2019, 51% and the double spending attack were confirmed for being used. To solve this problem, Gate.io has now raised the level for Ethereum Classic transactions.
While Ethereum Classic has fewer investors than its older brother, it is still a system that works around the same concept of proof-of-work, something that has been manipulated. So, the statement that it can not be manipulated at all was false when the fabulous "51%" attack worked.
Test system of manipulated work
The work trial system revolves around the concept of solving a math problem. To do this, many computers compete and, therefore, it was assumed that control of over 51% of competing computers was not possible.
However, now it seems that it is otherwise because, in this last attack, the threat actors not only controlled over 51% of the systems, but also manipulated them to validate the double expenses. In this way, the threat actors were able to pass cryptography twice, without objections to the Blockchain. This allowed the actors of the threat to subtract slightly over one million US dollars.
Although there is adequate room for improvement, at the moment the work trial system can be manipulated and the Gate.io case has demonstrated this. Here, the Blockchain has been controlled and manipulated to testify the double expense. This incident projects the dangers of the use of a financial system in its infancy.
I'm a Tech Geek, Travel Freak and a Crypto Buff. I like writing about Tech News, Blockchain, Crypto and Travel. I hope you like reading my comments. Reach me at: [email protected]
