Cryptocurrency Exchange EtherDelta Gets Hacked

Cryptocurrency Exchange EtherDelta Gets Hacked

Cryptocurrencies are the most preferred digital currencies nowadays. However, owing to the fame, they also attract hackers to a great extent. Where these are in headlines everyday due to their unimaginable increasing values, they also shock people with the different types of cyber- attacks they suffer.

One of the popular cryptocurrency exchanges is EtherDelta. It is a decentralized exchange that encloses all the Ethereum based tokens present till date.

ether delta

EtherDelta is not as big in volumes as compared to other exchange present in market, however it still plays an important role for traders whenever a token is generated in an ICO(initial coin offering).

News is, EtherDelta has been the latest target of hackers, the site suffered an attack on Wednesday. Hackers managed to hack the site in an unusual manner where users sent their tokens to hackers instead of the EtherDelta exchange.

It is reported that almost 308 ETH were stolen, that sums up to almost 266790 USD. Not only this, a large number of tokens too are said to be stolen.

As per reports, it was not the smart contracts that got compromised, which are the governing factors of EtherDelta’s behavior. On the contrary hackers smartly managed to rule the DNS server of EtherDelta to fool users by presenting a fake version of the site to them.

Comparing the nature of the attack it is clearly visible that the attack was much more than a phishing attack where a fake site with a similar domain name is set up.

In EtherDelta hacking, hackers managed to serve a partial functional version of site. Though it was there for only a few hours, all the users that visited the fake site during that time supposedly submitted their tokens to the hackers.

As per EtherDelta’s Twitter post, all the users have been advised not to use the site. Currently there is no information whether the site has been restored or not, so it advised not to use it as it may still be unsafe.

EtherDelta@etherdelta

EtherDelta gives its users three different ways of interaction. By using Ledger Nano S hardware, Software wallet such as MetaMask or by inserting users private key into the site directly. It is possible that the least safe method which is entering the private key may have been hacked by the attackers.

Ethereum’s Blockchain is public in nature that helped people see the transfer of funds in and out of the hacker’s addresses. As per reports, movement of tokens started from 1:40 p.m. ET that continued till almost 8 p.m. ET. In addition to this a bulk transfer of token to the hacker’s addresses was seen around 1:30 a.m. ET Thursday.

It doesn’t seem that visitors are going to move any funds in wallets using EtherDelta any soon.

Year 2017 has seen the most ferocious cyber-attacks, and EtherDelta being hacked is no less. We understand the fact that all these exchanges are decentralized, however, they still have their sites as the single point of entry. That’s where hackers aim to compromise the single point of entry.

Well after innumerable cyber attacks this year, it is clearly seen that even cryptocurrency sites are not an exception. We leave it up to you to decide whether you find it safe to invest your hard-earned money into them or not!!

Next Read:  What Happens to Your Bitcoin When You Die!

Pragya Dani is a technical blogger at Systweak. She loves exploring hidden and lesser known features of gadgets and all things tech. Pragya also likes trying out different cuisines and Italian tops her list

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