Coinbase Halts Ethereum Classic Transactions Because Of Suspicious Activity

Blockchain, Crime, FinTech, Investing, News | January 7, 2019 By:

Ethereum Classic transactions on the Coinbase exchange have been halted because of suspicious activity on the network that may allow double spends.

Withdrawals, deposits and any other transaction has been stopped as of late Sunday on Ethereum Classic. which had more than 100 blocks reorganized, which may cause a potential 51 percent attack.

The Coinbase blog post said the exchange detected about 88,500 ETC being double-spent, totaling some $460,000.

While some developers dispute whether a 51 percent attack is underway. That process occurs when miners control more than 50 percent of a network’s hashrate, thus preventing new transactions from gaining confirmation and halting or reversing transactions. That allows miners to “double spend” the same coins.

In response to the situation, Coinbase and other exchanges will likely take steps to slow transactions, increasing the confirmation needed.

Sky Guo, CEO of Cypherium, said last year the crypto community had several 51 percent attacks against major projects, “which left consumers questioning whether the industry has the necessary safeguards in place to protect the interests of the community. For the industry to flourish, projects need to earn the full trust of their customers.”