Ethereum Classic, an offshoot of Ethereum with an overall market capitalization of $531 million, suffered a 51% attack, which led to double spend. At press time, the asset is trading at $5.05, marking a drop of almost 10% within the last 48 hours.
The attack comes a few weeks after the Ethereum Classic main development team was shut down due to a lack of funding.
$500,000 Worth of Tokens Stolen
Earlier this week, the Ethereum Classic (ETC) blockchain was attacked by a hacker who gained about 60% of the blockchain’s computing power. The hacker went on to steal – and subsequently spend- 85,000 ETC tokens (worth roughly $500,000), then rolled the blockchain back with the massive amount of computing power so that the spent tokens could be recovered.
Gate.io confirmed that the hack happened between 00:40 and 04:20 on January 7, and that all transactions involved in the hack were confirmed on the ETC blockchain.
Reactions from Major Crypto Exchanges
In the wake of the attack, a large number of major cryptocurrency exchanges have already halted the trading of ETC tokens on their platforms. On Monday evening, Coinbase made a surprise announcement that it will temporarily disable all receipts and transfers of ETC, although the action will not have any impact on the ability of customers to buy and sell the digital asset.
In a blog post, Coinbase said, “The Coinbase team is currently evaluating the safety of re-enabling sends and receives of Ethereum Classic and will communicate to our customers what to expect regarding support for ETC.”
Kraken exchange followed, informing its customers via an update that it appeared Ethereum Classic was under a “51% attack.”
The exchange imposed a temporary suspension of all deposits and withdrawals of the asset until the issue could be resolved.