Home News Ethereum Classic network is under 51% attack

Ethereum Classic network is under 51% attack

Cryptocurrency exchange Coinbase suspended ETC trading, as the company’s experts detected “double spending” in Ethereum Classic blockchain network. ETC team confirmed the rumors about suspicious activity in its network, but suggested that this could result from dirty mining or test-run of new Linzhi ASIC miners. Linzhi top management, nevertheless, denies any involvement in the incident.

Coinbase has suspended all ETC transactions due to suspicious activity in the coin’s network, as the official tweet on the matter reads:

As reported by Coinbase cybersecurity team, “a deep chain reorganization of the Ethereum Classic blockchain that included a double spend” was detected. Unidentified attackers managed to double spend 219 500 ETC roughly worth $1.1 million.

The trading platform keeps on reporting on the current situation with ETC.

Ethereum Classic team confirmed the hears about 51% attack and is currently investigating the situation. Though the exact cause of the incident is yet to be determined, ETC administration sticks to two main hypothesis on the matter. The first one presupposes that some mining pool could have managed to seize over 50% of the total network capacity. The second guess is that mining equipment manufacturer Linzhi is to be blamed, as the company could have begun testing its new ASIC miners.

However, Linzhi director of operations Wolfgang Spraul denied these allegations:

“If we would test our ASICs, we would never do that on any mainnet, we would do that on a testnet or a private net. We would most likely invite independent industry figures like David Vorick or Anthony Lusardi to observe what we are doing,” – he wrote in an e-mail to CoinDesk.

ETC team, in turn, urged all the exchanges to increase block confirmation times:

Notably, in a tweet which is already removed the company admitted that the case has probably more to do with so-called sordid mining than with 51% attack.

Meanwhile, cryptocurrency exchange Kraken has also suspended ETC trading.

Last month, blogger and blockchain expert Stepan Gershuni reported that Vertcoin network had fallen victim to 51% attack. Bitcoin Cash is at risk of suffering the same fate, given that earlier this month mining pool BTC.TOP got over 50% of the network’s hashrate under its control.