Hashflare, likely the first of the non-Ethereum family to come out publicly as affected by the breach in the DAO contract, has suspended ETH mining activities.

Following the breach experienced in The DAO contract, Hashflare has announced the suspension of its ETH mining activities.

“It is our duty to let you know that due to the recent breach in the DAO contracts, ETH mining and withdrawals will be blocked until the breach is fixed,” the cloudmining company stated in a notice sent out to its subscribers.

It adds:

“At this exact moment, the developers of the DAO and Ethereum are working hard to solve the issue. However, according to information provided by the developers of Ethereum, it is possible that a "soft fork" will be created. This means that currently it is unsafe to make any transactions or mine Ethereum due to a possible blockchain revert, which will irreversibly nullify the transactions, leaving all parties without the funds.”

The breach

The DAO smart contract got attacked and a large amount of funds it controls were stolen. The attack exploited an unknown recursive calling vulnerability.

The Ethereum platform and its contract enforcement capability was not affected by the attack, though the value of Ether has been affected in the short term. Also, the stolen funds cannot be cashed out pending a 27-day wait period.

Hashflare says:

“We are constantly monitoring the situation and will activate the mining process along with the withdrawals as soon as the solution is deployed on the Ethereum side. Sales of ETHASH contracts is also suspended until the issue is resolved.”