The team behind Ethereum Classic (ETC) says it’s launching a legal and technical response after the network suffered two 51% attacks in a matter of days.
According to the blockchain intelligence firm Bitquery, the attacker has stolen a total of $7.28 million in ETC since the start of August. A 51% attack occurs when a single entity manages to gain control of the majority of a blockchain network’s hash rate. In doing so, they become capable of manipulating the blockchain and spending transactions twice.
Ethereum Classic Labs, which leads the development of Ethereum Classic, says it’s hired the crypto analytics firm Chainalysis to trace the malicious transactions and try to determine who is responsible for the attack.
The organization says it’s also hired the cross-border disputes and investigations firm Kobre & Kim to help with the investigation and pursue criminal charges.
“Together we will cooperate with stakeholders and agencies in the United States and wherever else the investigation leads to analyze the transactions and to identify the responsible parties with the knowledge and motive to carry out these attacks.
We want to ensure that there are severe consequences for manipulating a public blockchain to steal. We are determined to protect the integrity of the ecosystem.”
Ethereum Classic Labs is also asking that miners who power the network take extra precautions to ensure transactions are valid.
“As these events are ongoing, we’d like to again remind all ETC service providers to raise the amount of confirmations required on all deposits or incoming transactions.
Potential solutions and mitigations are being discussed.”
According to Crypto51, the cost to buy enough mining power to attack the Ethereum Classic network is currently $5,618 per hour. To attack the leading blockchain, Bitcoin, it would cost a whopping $507,643 per hour.
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