NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Tether Targets $500 Billion Valuation In New Equity Offering Amid US Expansion Plans
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Tether Targets $500 Billion Valuation In New Equity Offering Amid US Expansion Plans

DAO Hack, Attacker Sends Open Letter to Ethereum Community

Gautham
Gautham
7 years ago
3 mins read
DAO

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The DAO platform was in trouble yesterday, following a hacking incident yesterday the platform is said to have lost about $50 million worth of digital currency. However, there is a good possibility that the stolen ether associated with the DAOs can after all be recovered, preventing huge losses to thousands of investors in the platform.

According to a recent update on the Ethereum blog, Vitalik Buterin, the creator of the platform has mentioned that all the investor funds are safe at the moment. He also goes on to explain the exploit utilized by the attacker and the process used to drain funds. All funds drained from the DAO in the form of ether are currently housed in a child DAO. The attacker is said to have exploited the recursive calling vulnerability by calling a split function and again calling a split function recursively inside the split to collect a lot more ether in one single transaction.

Ether safe for now

While the child fork managed to collect $50 million in ether, it can’t be withdrawn until the creation of child DAO is finished, which incidentally will take another 27 days. The Ethereum development community has decided to counter the issue by introducing a software fork which makes any transaction requiring ether to be transacted from the balance in the account with code hash – 0x7278d050619a624f84f51987149ddb439cdaadfba5966f7cfaea7ad44340a4ba will be deemed invalid, thereby preventing the attacker from withdrawing the ether even after the completion of 27 days leading to a successful child DAO creation.

Is the attacker’s actions justified?

With the DAO community working towards preventing the attacker from gaining access to the ether siphoned off into the child DAO, the attacker has posted an open letter addressed to all the members of DAO and Ethereum Community. In this letter, he defends his action by saying the made use of a feature that was available on the platform and the 3,641,694 ether he collected during the process rightfully belongs to him.

He also goes on to mention that the feature was intentionally put in place by the concerned developers of the platform to promote decentralization by encouraging people to create child DAOs. He believes that he legally took advantage of the incentive and that he is disappointed to be labeled as a thief. He has also warned that he will be taking legal recourse if the Ethereum Foundation or the DAO community attempt to prevent him from accessing the ether he has collected on the child DAO.

The attacker’s letter can be accessed here.

Some of the community members who checked the open letter have claimed that the digital signature used to sign the letter is a fake. However, there are few who believe it to be accurate.

The debate now is to understand whether it is right to penalize a community member for utilizing the features provided on the platform for their benefit. There is still time for another 27 days before the necessity for any action arises and by then we will know how the Ethereum Foundation will decide to proceed with the potential loss of ether from its platform. However, the recent attack has definitely exposed some serious security flaws in the DAO platform which may hurt its reputation.

Ref: Ethereum Blog | Attacker's Letter | Wired |Image: WSJ
Tweet123Share196ShareSend
Gautham
Gautham

Gautham

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum koers verwachting 2025 - ETH euforie verdwijnt, $4000 target?

Ethereum koers verwachting 2025 – ETH euforie verdwijnt, $4000 target?

Het enthousiasme rondom Ethereum lijkt over de afgelopen weken te zijn afgenomen. De Ethereum koers is er namelijk niet meer...

Lars Diederiksen 1 hour ago
solana-vers-250-faut-il-acheter-maintenant

Solana vers 250 $ : faut-il acheter maintenant ?

Solana peut viser plus haut que 250 $ si l’élan actuel s’auto-entretient, porté par un flux d’intérêt visible sur les...

evanss 1 hour ago
Bitcoin price crash

Analyst Says Bitcoin Bear Market Has Started, Predicts 50% Crash To $61,000

After hitting its $124,000 all-time high back in July, the Bitcoin price has now moved back into a phase of...

Scott Matherson 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

solana-pret-a-detroner-ethereum

Solana prêt à détrôner Ethereum ?

evanss 46 minutes ago
Ethereum news

Ethereum Thesis From Tom Lee Torched As ‘Retarded’ By VC Firm Boss

Jake Simmons 47 minutes ago

比特幣挖礦難度創歷史新高 Meme幣PepeNode讓挖礦變得輕而易舉

estherw 52 minutes ago

Premium Sponsors

Press Releases

  • 不安定な一週間の後、11万3,000ドルを維持、市場の次の展開は?

    ビットコイン...

    7 minutes ago
  • 2025年第4四半期に注目すべき次世代ミームコインとは?

    仮想通貨...

    22 minutes ago
  • パイネットワーク...

    34 minutes ago
  • Сривът на акциите на crypto treasury...

    3 hours ago
  • Aster на Binance скача с 1800% за седмица...

    3 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.