Gate.io Research Confirms Attack on Ethereum Classic, Promises to Reimburse users

Crypto exchange Gate.io has confirmed that it had lost about $220,000 worth of Ethereum Classic coins – about 40,000 ETC – during the ongoing manipulation of the project’s blockchain network.

The company published an analysis of their findings on its platform during the alleged attack, claiming it has detected seven rollback transactions — four of which were reportedly conducted by the attacker, transferring a total of 54,200 ETC in total.

The incident occurred over a period of 4 hours between 0:40 and 4:20 Jan.7, 2019 UTC. Initially, the exchange managed to weed out dubious transactions, but some of the double-spends looked valid and were accepted by the system.

“Initially, the censor of the Gate.io successfully blocked the transaction of the attacker and sent them for manual inspection. Unfortunately, during the attack on 51% of all transactions look valid, and was successfully confirmed on the blockchain. The inspector missed a transaction. This caused a loss of about 40 thousand ETC during the attack. Gate.io will assume all losses of users,” wrote representatives of the exchange in his blog.

Gate.io published addresses of the alleged hackers:

  1. 0xb71d9CD39b68a08660dCd27B3EAE1c13c1267b10;
  2. 0x3ccc8f7415e09bead930dc2b23617bd39ced2c06;
  3. 0x090a4a238db45d9348cb89a356ca5aba89c75256.

The exchange also alerts other crypto exchanges to block transactions originating from the identified suspect addresses. The exchange also says that it has increased the ETC transaction confirmation number to 500 and also released a more powerful 51% detection security mechanism.

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