Cryptocurrency

$7 million stolen in CoinDash ICO hack

CoinDash - ICO hack
(C) iStock.com/erhui1979

An ICO for blockchain technology startup CoinDash was shut down after it was revealed that the company had been hacked.

The hack has resulted in the theft of $7 million worth of ether from investors trying to take part in the offering.

Investors had been told to use ethereum to pay and send funds to the ICO’s smart contact address. CoinDash said that the evidence points towards the sending address being hacked and being changed to a fraudulent address.

The company has said that any transactions sent to the fraudulent address after the CoinDash website was shut down will not be compensated.

Any investors who sent ether to the fraudulent address and to the CoinDash.io official address will receive their CDT tokens.

The security of ICOs

The event is not as severe as the $50 million that was stolen in last years DAO ICO, but will again draw a spotlight onto the security issues surrounding ICOs.

CoinDash looked to provide users with organisational tools for handling crypto assets, and had partnered with Cryptocompare, Smith and Crown, RSK Labs and others.

In a statement on its website, CoinDash stated:

“This was a damaging event to both our contributors and our company but it is surely not the end of our project. We are looking into the security breach and will update you all as soon as possible about the findings.

“The CoinDash vision, product and team will continue to live on.”

UPDATE: According to CoinDesk , as of 19 July 2017 the amount stolen as a result of the hack is now over $10 million.

 

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