$30 Million Theft Roils Ethereum Community

Crime, FinTech, ICO News, Investing, News | July 20, 2017 By:

Smart contract coding company Parity Technologies has reported that a vulnerability in a version of its wallet software has led to theft of an estimated $30 million in ether.

Parity founder and chief technology officer Gavin Wood, a co-creator of ethereum, confirmed Version 1.5 of the company’s wallet software has been exploited. At least three addresses were compromised.

“There is an effort by the foundation underway to secure funds in other wallets to prevent any further compromises,” Wood wrote on a company channel.

To date, 150,000 ethers, worth $30 million, have been reported by Parity as stolen, data confirmed by Etherscan.io. The problem was apparently created by a bug in a specific multi-signature contract known as wallet.sol, according to Parity.

The theft could have been worse. Some 377,000 ethers that were potentially vulnerable to the issue were recovered by white hat hackers.

Parity urged “any user with funds in a multi-sig wallet” to move their ETH to a secure address. Most multiple wallet-holders are companies, and at least one built on ethereum – Swarm City, an e-commerce site – confirmed the loss of 44,055 ETH.

The Swarm City confirmation also claimed Edgeless Casino, a gambling site, and smart contracts/wallet purveyor Aeternity were compromised. Those companies have yet to make a public statement.

The ethereum market has already been spooked by scaling issues and digital attacks. Just this week, CoinDash halted an initial coin offering because of a compromised address for funding.