Hacker Returns $26 Million in Ether Months After ICO Theft

A hacker who compromised CoinDash's website last year and took 43,500 ether tokens from would-be investors has returned 30,000 of them to the project.

AccessTimeIconFeb 26, 2018 at 11:00 p.m. UTC
Updated Sep 13, 2021 at 7:37 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A hacker who stole more than 43,000 ether tokens from would-be investors in CoinDash has returned a majority of the funds to the startup.

The company reported that the thief returned 30,000 tokens over two different transactions, the first in September 2017 and the second last Friday, to CoinDash’s wallet. At press time, the tokens were worth a little more than $26 million.

The thief still has some 13,400 tokens ($11.6 million) after the second transaction.

The hack was first reported in mid-July 2017, when the hacker managed to compromise CoinDash’s fundraising site, swapping its ethereum address with another one. Users believed they were purchasing tokens and supporting the project, but more than 2,000 of them actually funded the hacker, as previously reported by CoinDesk.

At the time, the stolen ether tokens were worth roughly $10.3 million.

Investors who unwittingly donated to the hacker still received CoinDash’s CDT token, though anyone who donated after the project’s website was shut down did not. At least one user reportedly sent 50 ethers to the compromised address after it was shut down.

Despite the theft of its funds last year, CoinDash intends to launch its first product on Feb. 27, according to its website. This product will be a social trading platform, which CoinDash states will be integrated with several cryptocurrency exchanges, including Poloniex, Bittrex and Binance.

Business miniatures image via Shutterstock

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.