Parity Hack: White Hat Group Drains $85 Mln As Company Fills Holes

The $34 mln Ethereum hack from Gavin Wood’s Parity client continues Thursday amid desperate attempts to secure funds.

As reports began surfacing on social media of a multimillion dollar compromise to Parity, an official blog post subsequently confirmed a “security alert,” the effects of which are ongoing.

Multiple news outlets reported the loss of Parity ETH, with the latest estimates suggesting more than 150,000 coins ($33,853,000) are missing.

Wood, who along with Vitalik Buterin was one of the co-founders of Ethereum, said efforts were still being made to contain any future risk.

"There is an effort by the foundation underway to secure funds in other wallets to prevent any further compromises; they will make an announcement in their own time,” he wrote on Parity’s Gitter channel quoted by Business Insider today.

Customers affected by hackers exploiting a wallet vulnerability include P2P sharing economy startup Swarm City, which yesterday signaled the loss of almost 45,000 ETH (10,155,000).

A white hat hacker group subsequently drained other Parity wallets to protect funds worth 377,105 ETH ($85,108,000).

The attack was initially thought only to affect version 1.5 of Parity’s wallet software and higher. However, the company appears to have retracted the statement, crossing out the information in its original blog post.


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