Coinbase Suspends Ethereum Classic Transactions after Double Spend Attack

[PRIBO247]

Shortly after detecting a deep chain reorganization of the
Ethereum Classic blockchain ( ETC) on January 8, 2019,
cryptocurrency exchange platform Coinbase Tweeted that it has
stopped all transactions related to the cryptocurrency.

Ethereum Classic Blockchain Reorganized
After having a monumental 2018, Coinbase would have hoped to
carry the positive momentum into 2019.
However, the U.S.-based crypto trading behemoth was in for a
surprise on January 8, 2019, when it was forced to abruptly pause
transactions related to one of the cryptocurrencies in its portfolio.

In a bid to safeguard investor funds and mitigate any further
damage because of the double spend attack, Coinbase temporarily
halted all interactions with the ETC network.
In crypto terms, chain reorganization attacks are akin to theft.
Basically, these attacks rewrite the entire history of transactions
on the affected blockchain network, which could retrospectively
change the route of cryptocurrency transfers. Typically,
cybercriminals and hacker groups quickly move the digital tokens
to their crypto wallets during such an attack.
In a blog post pertaining to the matter, Coinbase stated that it
found 12 additional reorganizations that included double spends to
the tune of 219,500 ETC ($1.1 million).

Emin Gün Sirer, a professor at Cornell University, substantiated on
the 51 percent attack on the Ethereum Classic Network. Through
a tweet , posted on January 8, 2019, Sirer explained that a deep
reorganization on a blockchain network marks the complete failure
of its immutability, a feature which is one of the cornerstones
of DLT. He dubbed the 51 percent attack a “catastrophic failure”
for the ETC network.
The Ethereum Classic community, on their part, also
acknowledged the chain reorganization attempt by hackers. The
community’s official Twitter account appealed to major
cryptocurrency exchanges and mining pools to allow a higher
number of confirmation blocks on ETC withdrawals and deposits.
As per the latest tweet , the ETC community is in discussion with
blockchain security firm SlowMist to come up with solutions to
improve the cryptocurrency’s proof-of-work (PoW ) consensus
mechanism.

51 Percent Attacks Continue to Plague the
Cryptocurrency Ecosystem
While digital currencies have come a long way in the past decade,
51 percent attacks continue to be a dire chink in the armor of
poorly-managed cryptocurrencies.
BTCManager reported on November 13, 2018, how AurumCoin, a
cryptocurrency backed by gold fell victim to a 51 percent attack,
resulting in the loss of $11,233. Similarly, on April 5, 2018, reports
emerged that cryptocurrency project Electroneum has succumbed
to a 51 percent attack.

https://btcmanager.com/

[Felix Felicis]

well, that's quite shocking to know!