Hack attack drains start-up investment fund

  • Earlier this year, investors put about $150m of Ether into the DAO.
  • “An attack has been found and exploited in the DAO, and the attacker is currently in the process of draining the Ether contained in the DAO into a child DAO,” wrote Ethereum founder Vitalik Buterin in a blogpost about the incident .
  • Mr Buterin has proposed that the system be changed to make all the addresses holding Ether in the separate or “child” DAO invalid.
  • The attack targeted an investment fund called the DAO which is based on technology derived from the Bitcoin crypto-currency.
  • But one DAO participant noticed a flaw in the way that tokens were transferred between members – this allowed them to siphon off about 3 million of the tokens into a separate DAO of their own.

Read the full article, click here.


@PeteStatham: “Hack attack hits #blockchain and drains start-up investment fund #cybersecurity -”


Hackers have taken control of virtual cash worth $60m (£41m) by exploiting a bug in a system designed to help start-ups.


Hack attack drains start-up investment fund