Blockchain startup Etherparty fell prey a cyber attack, some contributors' funds were misdirected to the attacker’s address.
Thus, during the Etherparty's ICO, an attacker successfully injected a fraudulent wallet address into the Etherparty ICO website. As detailed in the official blog, the team spotted the breach almost immediately, and within 15 minutes the website had been taken offline. The website remained down for about 90 minutes while the team rebuilt it and moved it to a new server.
Etherparty claims that it would distribute tokens to any contributors who sent funds to the fraudulent wallet address prior to the website takedown.
Our team has been consistently and successfully thwarting potential security issues to avoid further escalation. However, we do acknowledge and apologize for the temporary disruption to our otherwise successful launch day. Etherparty is eager and committed to compensating all affected contributors for the inconvenience.
Founder of Etherparty
Despite the incident, the startup has raised more than $28 million worth of Ether, Bitcoin, and USD so far.