Hackers to Steal Over $20M From Misconfigured ETH Clients

Attackers used the an RPC [Remote Procedure Call] interface on port 8545
12 June 2018   1316

A group of hackers stole more than $ 20M worth ETH from wallets and minning apps based on the same-named blockade. This is reported by CoinDaily.

The attackers used Ethereum software applications that were configured to provide access to the RPC (remote procedure call) interface on port 8545.

This interface is used to access a software API that approved third-party services or applications may request the receipt of data from the source service, for example, applications for storing funds received from mining.

The RPC interface is able to provide access to some important functions, allowing a third-party application to view private keys and personal user data, and conduct transactions.

By default, it is disabled in most applications, and developers warn of the potential danger of launching it if it is not properly protected by the ACL (access control list), firewall, or other authentication systems.

Nowadays, almost all Ethereum-based software comes with an RPC interface, and in most cases, even when turned on, they are appropriately configured to listen to requests only via the local interface (127.0.0.1), meaning from apps running on the same machine as the original mining/wallet app that exposes the RPC interface.

Despite the warning of official developers, users continued to use misconfigured Ethereum clients for years. Many of them reported a loss of funds through an open RPC interface.

The scanning of these interfaces lasted for many years, but intensified with the rise in prices for cryptocurrencies. One of the biggest surges of scanning activity was registered in November last year.

The attacks were successful, as the victims soon discovered that the version of the Electrum Wallet application comes with RPC JSON, enabled by default, which makes it easy to access user tools.

According to security experts, at least one case of a massive scan of port 8545 was recorded in search of the software left on the Ethereum network.

Since March of this year, when these scans began, the attacker was able to get about 3,96234 Ethereum (about $ 2-3 thousand).

After analyzing the data of our own observations, the Netlab team concluded that the scan of port 8545 never ceased, intensified when several groups joined it. One of them turned out to be more effective than the others, assigning more than $ 20 million from Ethereum to open applications.

Satori, one of the world's largest IoT botnets, in May 2018, also began scanning for Ethereum's open air miners.

dOrg to Become The First DAO With Legal Status in US

DAO is a company in which the centralized leadership and hierarchy is replaced by a smart contract
13 June 2019   200

The decentralized autonomous organization (DAO) dOrg based on the DAOstack framework registered dOrg LLC in Vermont, USA. This was the first precedent in the United States, according to law firm Gravel & Shea.

According to the company, the blockchain-based limited liability company (BBLLC) has a legal status, which allows it to enter into agreements and protect the interests of participants in accordance with applicable law.

Note that a DAO is a company in which the centralized leadership and hierarchy is replaced by a smart contract. Decisions in such organizations are made by voting by the participants, which provides consensus.

dOrg asked us to help design a DAO legal wrapper after discovering the potential of BBLLCs. We believe that dOrg is now the first legal entity that directly references blockchain code as its source of governance. Its material operations and ownership interests are managed entirely on-chain.
 

Oliver Goodenough

Law professor, Vermont Law School and special counsel, Gravel & Shea

dOrg believes that they have made the first step in integrating the DAO format into the existing economy.

Some time ago, Moloch DAO attracted 1000 ETH from Vitalik Buterin, Joseph Lubin, start-up ConsenSys and non-profit organization Ethereum Foundation.