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Ethereum blockchain attack: Gate.io promises to refund $271k to customers

gate io loses 40k etc in 51 percent ethereum attack

The exchange Gate.io has lost two hundred and seventy-one thousand dollars to the attackers who were successful in a fifty-one percent (51%) gain attack on the Ethereum blockchain.

The attackers were able to extract fifty-four thousand and two hundred Ethereum classic coins (ETC). The attackers gain a fifty-one percent (51%) control of the blockchain that is required to rollback transaction and extracts money out of these transfers.

The four-hour-long attack came after midnight on January 7 (UTC) and continued till after 4:00 am. Gate.io was able to track down the transfer’s initially but once the attackers gained fifty-one percent control of the network all transaction were validated and according to Gate.io “about 40k” ETC were extracted in the attack.

However, acting honorably, Gate.io is taking one for the customers with the promises that the exchange would refund all customers who lost their currency during the attack. The exchange also sent a cross-exchange request to seize all transaction to the addresses identified as the criminal addresses.

Ethereum blockchain is currently governed by Etheremine and SparkPool_3 for fifty one percent (51%) of the network. The bad news in such an attack would be the fact that the same network used to power the blockchain becomes an accomplice of the criminal act.

Aroosa Nadeem

Aroosa Nadeem

A media graduate and passionate media person Aroosa has a knack for digital media journalism and outreach. She has contributed content to different digital media publishers in a variety of areas including technology, health and finance.

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