How Hackers Stole $7 Million in Ether From Coindash ICO

Coindash is a blockchain company that helps investors manage investments and hedge those investments against other traders. This morning the startup’s token sale was hacked and 7 million dollars’ worth of ether were promptly stolen. The company left a warning on its token funding page advising investors to cease sending funds.

Also read: Alphabay Phisher Makes $1 Million in 14 Months Stealing Bitcoins

Coindash’s funding page read, “This is an emergency message delivered to you in order to stop you from sending your money to an unauthorized ETH address. It seems like our Token Sale page was tampered and the sending address was changed. Please stop from sending your funds to any of the addresses until we say otherwise. We are currently examining the situation and will shortly send further instructions.”

The token sale was slated to last for 28 days, and intended to raise $12 million. However, after the hacking attempt, the page was summarily shut down by the staff. The hacker had commandeered the website and changed the ethereum address. This allowed the thief to siphon funds from investors, whose ether were originally intended for the Coindash token sale address. The thief’s address was tracked down on Etherscan, and it showed the amount of stolen ether to be worth $7.4 million USD.

Coindash Takes Responsibility; A Damaging Event

Coindash admitted it was responsible for the stolen funds. They said they would ensure all investors would receive their tokens even if their ether went to the wrong address. However, their warning mentioned any funds sent to the fraudulent address after the issued warning will not be refunded.

Contributors that sent ETH to the fraudulent Ethereum address, which was maliciously placed on our website, and sent ETH to the CoinDash.io official address will receive their CDT tokens accordingly. Transactions sent to any fraudulent address after our website was shut down will not be compensated

Their announcement said this was a damaging event, for both the startup and their dedicated investors. However, it is not the end of Coindash. They plan on pushing forward with the project and are presently gathering more information on the security breach.

Coindash Company Information; Recovery Time

A Smith and Crown website explained the purpose of the project. Coindash provides users with tools for organizing and handling crypto assets. It has features that allows investors to “copy-trade” other investors by selling access to their investment decisions. It also boasts a marketplace that has real-time trade signaling. Coindash has partnered with Cryptocompare, Smith and Crown, RSK Labs, and more.

The Coindash security breach announcement warned all investors they are still under attack, and to have patience while they recover from it.

Do you believe Coindash handled the situation appropriately and can they recover from the attack? Let us know in the comments below.

Images via Twitter, Zerohedge, and Shutterstock 

Show the world how cutting-edge you are with a bitcoin T-shirt, hoodie, bag, key-ring, even a Trezor hardware wallet. Shipping all over the world, quality merchandise and, of course, with a payment system that makes people say “wow”!

The post How Hackers Stole $7 Million in Ether From Coindash ICO appeared first on Bitcoin News.