A Malicious “51% Attack” Hit Ethereum Classic, The Loss Allegedly Accounts For $460 000

An operator of Ethereum Classic mining pool has confirmed that a 51% attack has hit ETC network on January 7. This attack refers to a malicious attack on blockchain when hackers obtained more than 50% of mining hashrate of network.

The hackers got the ability to reorganize blocks and even replace them on blockchain, moreover, the culprits are able to “double spend” coins, i.e. the same coins can be transferred several times.

The rumours that ETC has been experiencing a hacker attack originally appeared on CoinNess, Chinese journal on the 6th of January. The report says that SlowMist, Chinese blockchain security firm, was the first to notice the attack.

The article reads:

“The ETC community followed up on the development of the incident immediately and learned that there is a private mining pool…that achieves more than 50% of the total network hashrate at certain times.”

The spokesman of Ethereum Classic has responded in Twitter, saying the network “operated normally”.

However, in just a few hours, the representative asked all mining pools to “allow a significantly higher confirmation time on withdrawals and deposits (+400).”

Later, without any confirmation or comment, the official account of Ethereum Classic retweeted the report made by Chinese journal.

On January 7, the cryptocurrency exchange Coinbase has posted a report saying that they detected this attack on the 5th of January. Mark Nesbitt, Coinbase Security Engineer, who wrote that report, stated that since the disclosure of malicious attack, there had been 8 chain reorganizations worth approximately $460,000.

Ethereum Classic refuted to the report of Coinbase, claiming that the later did not “connect  with ETC personnel regarding the attack.”

While it is still unknown who was the first to detect the malicious attack and what are the consequences of it, we want to remind you

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