Raider Takes $79.6 Million Worth Of Cryptocurrency
Around $150 were raised in Ether by Decentralized Autonomous Organization(DAO), an investment collective. Ether is a Cryptocurrency that is starting to rival Bitcoin. The funds were protected with a strong protocol by storing them at an address on the ethereum blockchain, a decision was made by the members of the DAO to decide how to spend these funds, by collective voting on the proposals put before them.
But couple days ago (from the time of publication on June 19), there have been portions of ether getting transferred away from the DAO’s address. The balances at DAO fell by 3.7 million ether, worth $79.6 million at that time. After the hack was discovered the price of ether itself plunged by around 27% resulting in its worth depreciating from $21.50 to $15.59. This has also hit the value of the bitcoin falling.
Cryptocurrency heists happen more regularly. The most famous Mt. Gox – once the biggest bitcoin exchange in the world, saw hundred of million of dollars worth of bitcoin vanish, leading to its collapse in 2014.Ethereum’s Vatalik Buterin has come forward with his theory of a software fork. He claims it would prevent intruders from using the ill-gotten goods, though there are many headaches in store for both contract creators and investors. The contract makers will have to take extra care in order to avoid the flaw and limit the value of their contracts which will prevent the looters from making off with huge sums of cash. Buterin also quotes that Ethereum itself is safe – Miners can carry on, and users should “sit tight and remain calm” while they wait to trade again.