A new partnership to design ETH reference index

An effort to develop a touchstone for Ethereum token price is the purpose of ConsenSys and TrueDigital team-up
12 March 2018   86

Blockchain venture studio ConsenSys and a new affiliate of marketplace trueEX - TrueDigital, have announced a partnership between each other. The goal is be able to offer more crypto trading products to institutional investors as their interest in digital currency related derivative products is on the rise.

Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities. But the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets.


Sunil Hirani

Founder, TrueDigital

The initial step is to invent an anchor index for the market as a whole for the price of ETH. Alongside this partnership, trueEX s going to launch a special marketplace for digital assets as another step to convince institutional investors of confidence and transparency. First contracts are planned to be Bitcoin non-deliverable forwards (NDFs), settled in USD. TrueDigital, in turn, will handle the product development and manage sales and marketing for these new products.

NDFs on digital assets are the logical next step for institutional investors who are seeking exposure to Bitcoin and other digital currencies. Sunil is a proven innovator in financial products and market infrastructure, and one of the earliest advocates for the use of digital assets in institutional finance. We're looking forward to working with his team at trueDIGITAL.


Brooks Dudley

Vice President of Risk, ED&F Man Capital Markets

Coinbase Bug to Provide Unlimited Ethereum

The bug was found by VI Company in December last year
21 March 2018   105

VI Company reported the discovery of a vulnerability in the system of smart contracts of the Coinbase exchange, which allowed users to credit an unlimited amount of ETH to their accounts. Experts informed the company about the vulnerability in December last year, and in January it was eliminated. For their work, VI Company employees received an award of $ 10,000. This is reported by The Next Web.

By using a smart contract to distribute ether over a set of wallets you can manipulate the account balance of your Coinbase account. If 1 of the internal transactions in the smart contract fails all transactions before that will be reversed. But on Coinbase these transactions will not be reversed, meaning someone could add as much ether to their balance as they want. When you look up the Coinbase wallet address after this transaction you will see that it is empty, but checking your Coinbase wallet will show your funds.

VI Company Report

In practice, this means that Coinbase users were able to enroll any amount of Ethereum on their accounts.

Researchers provided screenshots showing how Ethereum was credited to their account using the cancellation of the transaction.

Coinbase Bug
Coinbase Bug

Steps to reproduce, provided by the researchers :

  • Setup a smart contract with a few valid Coinbase wallets and 1 final faulty wallet (always throw exception when receiving funds smart contract for example)
  • Transfer appropriate funds to smart contract.
  • Execute smart contract adding the set amount of ether to the Coinbase wallets without ever actually leaving the smart contract wallet because the complete transaction fails at the last wallet.
  • Repeat until you have more than enough ethereum in your Coinbase wallet.
  • Cash out, transfer to off site wallet.

Whether any of the users could detect and take advantage of this vulnerability for their own enrichment is unknown.