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Cryptocurrency exchange Okex reveals it suffered the $5.6 million loss as a result of the double-spend carried out by the attacker(s) in Ethereum Classic 51% attack. Okex says it fully absorbed the loss as per its user-protection policy while insisting that the attack did not cause any loss to the platform’s users.

Also as part of its immediate responses to the attack, the OKEx team said the “exchange had suspended deposits and withdrawals of ETC to prevent further losses.”

A total of five accounts on the exchange had been used in the attack and now the Okex team says it has “suspended the five accounts to prevent further incidents.”

Immediately following the attack, ETC developers initially downplayed the event by characterising it as an “accident.” At the time, the developers doubted if any major double-spend attacks had occurred.

However, an investigation by a blockchain analysis firm later revealed the “accident” was, in fact, a 51% attack, and that $5.6 million had been stolen. At the same time, reports linking Okex wallets to the incident also surfaced.

Responding to these reports in a blog, the Okex team clarifies that the “exchange was only involved in that the attacker(s) used the exchange to purchase and trade ETC.”

The Okex team also believes the exchange was targeted probably because it “provides excellent ETC liquidity, seeing some of the largest ETC transaction volumes in the industry.”

The blog report suggests that “the attacker(s) likely calculated that they would be able to relatively easily and promptly trade large amounts of ETC on OKEx.”

Regarding more steps it will take, the Okex team said:

“Additionally — given OKEx’s responsibility to protect users from similar incidents that threaten the security of their funds — the exchange will consider delisting ETC, pending the results of the Ethereum Classic community’s work to improve the security of its chain.”

However, the blog post does not give a specific time frame when the ETC community is expected to improve this.

Meanwhile, in his comments on the attack, Tim Ismilyaev, CEO and Founder at Mana Security, says such incidents are “common for less popular blockchains, ETC can’t fix it without significant amendments into their architecture.”

Ismilyaev also offers his view on why Okex still suffered the loss even after the ETC team had advised exchanges to halt deposits and withdrawals soon after the attack. Ismilyaev explains:

ETC’s advice was released after the attack occurred, so Okex couldn’t stop the withdrawal of stolen funds. Noteworthy, the attacker most likely knew how Okex risk management systems work. It allowed him to withdraw stolen funds without being detected. That’s why he deliberately traded assets only on OKEX rather than splitting funds across multiple exchanges to hedge the risks.

With one exchange, Kucoin having delisted ETC margin trading from its platform, the ETC team faces increased pressure to address the security challenges or face more delistings.

Can the ETC team solve the security challenges in time before another delisting? Share your thoughts in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Terence Zimwara , 2020-08-18 00:00:38 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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