Gavin Wood

Edgeless, aeternity Confirm Hacks; May Take Legal Action

Blockchain, Crime, FinTech, News | July 21, 2017 By:

The massive hack this week of Parity Technologies digital wallet resulted in three companies that have now admitted losses, with indications that they may file a lawsuit to recover the funds lost.

Edgeless Casino has confirmed the loss of 26,793 ETH ($5.6 million USD), while digital identity site æternity also issued a press release detailing the loss of 82,000 ETH ($18,290, 182 USD). They join Swarm City, an e-commerce platform, which lost 44,000 ETH ($9,740,197 USD), as announced victims of the hackers.

The three companies have indicated they have formed a group to explore potential legal actions against Parity.

Both Edgeless and aeternity assured investors that their project launches would continue as planned. The companies cited planned diversification programs that moved some of their ETH funds into other cryptocurrencies as a security and financial hedge, thereby ensuring business continuance. Swarm City has not commented on how the lost funds will affect operations, but said in a statement they are “more committed than ever to the development of Swarm City.”

However, Edgeless said its platform launch, anticipated in the third quarter of this year, will require players to purchase EDG tokens rather than playing directly with ETH.

Gavin Wood, the  Parity Technologies founder and a co-creator of ethereum, admitted that Version 1.5 of the company’s wallet software was hacked. Wood added that measures were taken to fix the vulnerability, which resulted in 150,000 ethers worth a claimed $30 million being stolen.

White hat hackers recognized the theft in progress and managed to secure other wallets before they could be drained, saving an estimated 377,000 additional ETH from being stolen.