$9 Million: Ether Stolen from CoinDash ICO after Website Compromise

July 20, 2017 3:14 PM UTC
Posted in: Archive

As reported by CCN.com, CoinDash’s much hyped ICO was going to take place yesterday but was abruptly halted after the company revealed that the sale had been compromised and the address users were sending Ethereum to belonged to an unknown hacker. The company quickly warned investors to stop sending funds, but the hacker still managed to gain millions in Ether.

CoinDash, according to Smith and Crown, is a blockchain-based company that combines portfolio management tools and social-trading through Ethereum smart contracts to help users manage their investment portfolio and benchmark it against the market and other users.

The company’s goal was to raise $12 million through the ICO that was to last for 28 days. The company stated that the sale secured $6.4 million from early contributors through a statement on its website.

By tampering the company’s sale page and getting his address on it, the hacker managed to earn, at press time, a whopping $9.2 million as users were tricked into sending Ethereum to his address. According to Etherscan, over 2,130 transactions took place.

CoinDash decided to take responsibility for the stolen funds and stated that it will soon be issuing CoinDash tokens (CDTs) to all investors who sent their Ether to the fraudulent address, before the company warned users that the token sale had been compromised and shut down its website. The announcement reads:

“CoinDash is responsible to all of its contributors and will send CDTs reflective of each contribution. Contributors that sent ETH to the fraudulent Ethereum address, which was maliciously placed on our website, and sent ETH to the CoinDash.io official address will receive their CDT tokens accordingly. Transactions sent to any fraudulent address after our website was shut down will not be compensated.”

The company admits the event was damaging, not only to themselves but to those who contributed to its development. Nevertheless, it shows resiliency in claiming that this is not the end of the project. The team is currently working on the security breach and stated that an update will soon be issued.

On CoinDash’s website, a small reminder reads that the attack is still ongoing, and as such users should avoid sending Ether to any address.

“Reminder: We are still under attack. Please do not send any ETH to any address, as the Token Sale has been terminated.”

On Twitter, CoinDash also asked those who sent Ether to the hacker’s address to fill out a form in order to assist them:

Featured image from Shutterstock.

Last modified: May 21, 2020 9:39 AM UTC

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Francisco Memoria @FranciscoMemor

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. Twitter: https://twitter.com/FranciscoMemor