Hackers to Steal Over $20M From Misconfigured ETH Clients

Attackers used the an RPC [Remote Procedure Call] interface on port 8545
12 June 2018   1627

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.

ETH May Become Security After POS Migration,- CFTC

At the moment, according to the head of CFTC, Ethereum is more likely an exchange commodity rather than a security, but it may change 
14 November 2019   142

The head of the Commission for derivatives trading (CFTC) Heath Tarbert expressed the opinion that cryptocurrencies involved in the cryptocurrency using the Proof-of-Stake algorithm can be considered as securities. It is reported by Decrypt.

Earlier, the head of the CFTC said that in its current form, Ethereum is more likely an exchange commodity rather than a security. However, I am sure Tarbert, over time, the status of an asset may change. For example, a security can become a commodity and vice versa.

We are thinking carefully about it.
 

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

The popular Proof-of-Stake (PoS) algorithm involves the use of “stake” as a resource that determines which particular node receives the right to mine the next block. Higher chances to generate the next block are received by the node with greater balance.

Recently, staking services that promise customers a return on investment in PoS assets have become popular. According to some experts, these services could potentially violate the provisions of the Howie test, such as having a joint venture, as well as an investment contract involving two parties.

At the same time, Tarbert spoke out against an aggressive approach to regulating cryptocurrencies, which could suppress innovation and hinder the strengthening of the US position in the innovation sphere.

Clarity and consistency is the first step to leadership.
 

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

Earlier, Heath Tarbert expressed the view that regulated futures based on Ethereum will soon appear on the market.