Grayscale investments assure their investors The etereum Classic trust funds are not directly at risk

Earlier this week BitcoinExhangeGuide reported a story on the 18th largest cryptocurrency, Ethereum Classic seemed to have become the last blockchain network to succumb to a 51% attack, in which a malicious miner accumulates the most of the hashpower network and uses it to rewrite the recent blockchain data.

Coinbase announced that it has identified multiple instances in which the attacker has exploited most hashes to perform double-spend attacks, which are generally directed against cryptocurrency exchanges. The Coinbase engineers later reported that the attackers successfully performed "repeated deep reorganizations of the Ethereum Classic blockchain, most of which contained double spend." Overall, the company said, "the value of the double spent that we have observed so far is 219,500 ECCETERA.

Secure funds at Grayscale Investment

In the wake of the attack, Grayscale Investments, which also created the Ethereum Classic Investment Trust (ETCG), sent an email to its investors explaining the details of the attack. The e-mail has read:

"The greatest risk this entails is the integrity of the Ethereum Classic network, as people may be less inclined to accept ETCs due to the increased risk of double spending. inside the ETC Trust are not directly at risk of theft or double expense. "

At the end of 2018, the trust had confirmed that it had about $ 25 million under their management. It was launched in 2017 as a private placement. Currently only verified investors can buy their shares from Grayscale and are contractually obliged to hold them for at least one year.

The e-mail has further explained the attack by saying:

"Double spending can only be done by the original coin sender – so a striker can only double his coins, not someone else's coins, so the main risk of 51% attacks and reorg blockchain is with people [who] accepts the blockchain resource; and especially when they do it in large quantities in exchange for virtual goods or services that are not reversible ".

Grayscale's managing director, Michael Sonnenshein, had previously said:

"As is often the case with developments in the digital resource ecosystem, Grayscale has received requests from some investors on the recent 51% attack on the ETC network. We have provided investors who have contacted us with publicly available information explaining how they occur. these attacks, these types of network attacks and their implications are also described in the disclosure documents provided to all investors. "

It seems that Grayscale wants to distance himself from the accident. Yaz Khoury of the Ethereum Classic Cooperative said: "In addition to providing financial assistance and consulting to the Cooperative, they are very much available in the way we can help the community and the ETC ecosystem".