Ethereum Classic Hacked For The Second Time In A Week

Today Bitfly and Binance reported another 51% attack and a reorganization of over 4,000 Ethereum Classic blocks in order to double spend.

The companies suspended all payments to the ETS, as well as froze current deposits.To combat the attacker, the project development team also called on all miners and pools to synchronize their actions, and recommended that exchanges temporarily block the ability to deposit and withdraw cryptocurrency.

Today's attack led to the largest block reorganization in the history of Ethereum Classic.In addition to the fact of hacking,doubts about the current security of the network are caused by the fact that this is already the second major change in the ETS blockchain in the last week.

On August 1, Bitfly announcedconsecutive reorganization of 3693 blocks. Despite the initial statement by the head of ETC Labs that the changes occurred by accident due to technical problems with one of the miners, further proceedings confirmed the fact of malicious actions and a double-spending of more than 800 thousand ETC worth about $ 5.6 million.

According to researchers from Bitquery, using the Nicehash service, the hacker rented computing power, and after the reorganization, moved the received funds to the OKEx exchange.According to estimates, only about 17.5 BTC or $204 thousand were spent on the attack, while the profitability exceeded 2700%. 

Analysts believe that 51% of these attacks are behind the same actor.

Due to serious security issues, Vitalik Buterin recommended the Ethereum Classic team to transfer the projecton the Proof of Stake algorithm.

Despite another reorganization, over the past 24 hours, the ETC exchange rate has not changed much and at the time of thepublications is $7.1 with a daily decrease of 0.85%.

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