$30 Million: Ether Reported Stolen Due to Parity Wallet Breach

A security bug in a major ethereum wallet has resulted in the loss of $30 million in funds.

AccessTimeIconJul 19, 2017 at 8:44 p.m. UTC
Updated Sep 11, 2021 at 1:33 p.m. UTC

Smart contract coding company Parity has issued a security alert, warning of a vulnerability in version 1.5 or later of its wallet software.

So far, 150,000 ethers, worth $30 million, have been reported by the company as stolen, data confirmed by Etherscan.io. As reported by the startup, the issue is the result of a bug in a specific multi-signature contract known as wallet.sol. Data suggests the issue was mitigated, however, as 377,000 ethers that were potentially vulnerable to the issue were recovered by white hat hackers.

Parity ranked the severity of the bug as "critical" in its public remarks, urging "any user with funds in a multi-sig wallet" move their funds to a secure address.

According to Parity founder and CTO Gavin Wood, at least three ether addresses have been compromised as a result of the bug.

Writing in the Parity Gitter channel, Wood said:

"There is an effort by the foundation underway to secure funds in other wallets to prevent any further compromises; they will make an announcement in their own time."

On social media, notable blockchain specialists are already weighing in on the situation, with Proof of Existence creator Manual Araoz suggesting that the compromised addresses could potentially belong to notable owners.

Specifically, he identified Edgeless Casino, Swarm City, and æternity – three recent initial coin offering projects built on ethereum – as potentially having been compromised in the thefts.

As of press time, Swarm City had confirmed the loss of 44,055 ETH. Edgeless Casino and æternity have not yet given any official comment.

Overall, it's the latest security setback for an ethereum project in recent days, following a hack on CoinDash in which $10 million was stolen in an ICO earlier this week.

Lock image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
FTX Token DAO Raises $7M From Community of Sam Bankman-Fried Fans

The money is destined for a fund that will contribute to community-led projects across decentralized finance (DeFi) and crypto education.

CoinDesk - Unknown
2
CoinDesk - Unknown
Según Morgan Stanley, la demanda de GPUs podría ralentizarse si Ethereum pasa a proof-of-stake

El cambio tampoco resolverá los problemas de escala de Ethereum, según el informe.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Americas: Bitcoin Holds $21K as BTC Outflows Hit Record High

The latest moves in crypto markets in context for June 27, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Goldman Cuts Coinbase to ‘Sell’ Due to Fall in Crypto Prices and Industry Activity; Shares Drop

The company faces a difficult choice between shareholder dilution and effective employee compensation, the report said.

CoinDesk - Unknown