Blockchain Daily

Critical Security Alert at Parity Technologies

Critical Security Alert at Parity Technologies

Following a $10 million hack on CoinDash, Parity Technologies is the latest ethereum client to be hacked. Shortly after announcing the critical security alert, word reached us from etherscan that the hacker got away with a whopping 153,000 ETH. That works out as about $32 million. This hack is one of the largest heists we have seen.

Some Ethereum projects that have been confirmed as being compromised include Swarm City, Edgeless Casino and Aeternity.

Given how recent the incident was, at this point we know very little about the hacker, or hackers responsible, but some are saying this hack was only a matter of time due to less than robust security practices being in place. It’s been pointed out that their quality control process is substantially lacking. Twitter user @SatoshiLite even goes so far as to call Ethereum a “hackers paradise”. While we don’t necessarily believe it is as simple as walking in and taking the loot we do agree that this situation was likely preventable to some extent.

The White Hat group who currently hold about 377,000 ETH are storing their fortune in a secure wallet. This is only until they can create replacement wallets for the many multi-sig wallets that were compromised and hacked. This will also prevent hackers from making off with more of their funds. If you’re a White Hat fundholder the official advice is to be patient while they’re saving what’s left of the currency.

How to secure your own funds

The development team was quick to release advice for multi-sig contract wallet holders that may be affected by the breach. They recommend you immediately transfer your funds to a secure address.

Unsure about what version wallet you have? Multi-sig wallets have a “wallet” tag in the upper right corner. If you have that tag and your wallet version is 1.5 or later, you may be affected.

If you’re a normal wallet holder and don’t have the little “wallet” tag in the corner, you should be unaffected by the breach so there should be no cause for concern. However it is always best to implement the best possible practices in securing your funds.

As always, urges you to remember that it is your responsibility to adopt good practices to protect your money. Ongoing advice is to refrain from storing large amounts of money in one place, like your Multi-sig wallet, and also to backup/encrypt your wallet where possible. Carefully analyse links sent in emails to prevent being victim of phishing too.

If you have any updates regarding this story as it unfolds please get in contact with us. As always to keep up to date with the latest news check back here regularly.