Consequences of Parity hack

Experts estimate giant volume of losses, a lot of Ethereum-based projects were hacked
21 July 2017   3149

Open-source blockchain-based distributed computing platform featuring smart contract functionality, which facilitates online contractual agreements.

Approx 9.30 am (Pacific Time) on July 19, 2017, a vulnerability was discovered. It could allow the hackers to drain the funds of users whoe used "multi-signature" Parity wallet. Multisig wallets requires multiple private keys for activation. Version of 1.5 or later was affected.

As a result, big amount of different projects were attacked. Among them:

Users were able to locate 3 wallets, where founds were send. 

  • White Hat Group’s Wallet
  • First Alleged Attacker’s Wallet
  • Second Alleged Attacker’s Wallet

White Hat Group also noted that they will return the funds. This info was posted on Reddit.  

The issue was caused by a bug in affected Parity's code. It allowed an affected wallet’s initialization function to be recalled after it was created. This allowed for a hacker to call the code after and claim that they own the account themself. Ethereum community members called that bug "the most obvious bug in the history of ethereum”; other noted that  vulnerability went undiscovered for a half of year. At approximately 1:30 p.m. Pacific Time, Parity founder Gavin Wood committed a fix to the Parity GitHub that he believes should alleviate the vulnerability. Also, there are some interesting comments at GitHub too, for example, "Who is auditing this code that ends up affecting $100 millions worth of currency ? :/" by admazolla.

At the moment of this article written, it is still unclear about  who the malicious attacker is or whether the remaining victims will ever recover their funds. Also, new victims can still appear. According to EtherScan, malicious account send the stolen funds to other wallets. Maybe, hackers hope to obfuscate its activities in this way. 

Grayscale ETH Trust to be Listed at OTC Markets

Ethereum Trust (ETHE), like the more popular Grayscale product called Bitcoin Trust (GBTC), will be able to trade freely like other securities on the OTC market
24 May 2019   69

Cryptocurrency assets manager Grayscale Investments has received permission from the Financial Industry Regulatory Authority(FINRA) to list the securities of its Ethereum trust (ETHE) in the OTC Markets OTC trading system.

Thus, Ethereum Trust, like the more well-known Grayscale product called Bitcoin Trust (GBTC), will be able to trade freely like other securities on the OTC market.

Also, Grayscale Investments draws attention, this is the first case when listed shares connected with the second cryptocurrency capitalization Ethereum appear on the open market.

ETNE securities will be traded in two weeks.

ETNE is an unlimited trust, the value of assets and capitalization of which are tied to the market price of Ethereum. Investors will be able to earn on fluctuations in the price of Ethereum without the need to acquire and store cryptocurrency.

Grayscale Investments manages ten cryptocurrency funds, most of which are available only to accredited investors.