Monday, November 23, 2020
No menu items!
  • News
  • Cryptocurrency
  • Contact Us
More

    The Ethereum Whale that Lost $5.2M to Abnormal Tx Fees Has Been Identified

    Must Read

    Ethereum 2.0 Staking Deposits Surpass 65% of Required ETH As Price Hits $600

    At the time of publication, the Ethereum 2.0 staking deposit contract has surpassed 65% of the required amount of...

    Ripple Has Officially Added Bank of America (BoA) to the List of Top RippleNet Members on Its Website

    Ripple, the San Francisco based blockchain firm, has now officially included Bank of America (BoA) on the list of...

    Crypto Strategist Scott Melker displays His Bullishness on ADA, ETH, LTC, XRP and Three Others

    A cryptocurrency analyst, Scott Melker, popularly known in the crypto industry as Wolf Of All Streets, has revealed he’s...
    Avatar
    Solomon Odunayo
    Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.




    According to a recent report, the Ethereum whale that lost $5.2 million to abnormal fees in two transactions has been identified.

    Researchers at PeckShield, a blockchain analytics platform, shared this revelation on Twitter some hours ago. According to the report, the Ethereum address belongs to a small peer-to-peer (P2P) Korea-based cryptocurrency exchange named Good Cycle, suggesting it’s possibly running a Ponzi scheme.

    Further investigation conducted by PeckShield researchers revealed that the exchange’s security is considerably lethargic, giving room for hackers to easily perpetrate their usual enterprise.

    PeckShield shared this, “Update: We have identified the victim, a small P2P exchange in Korea called Good Cycle, which appears to be a Ponzi Scheme project. Our investigation found that their security is really lacking, e.g., using HTTP instead of HTTPS, and could be easily hacked.”

    How the Sender’s Identity Got Revealed

    Chiachih Wu, the vice president of research at PeckShield, claimed that they initiated a test transaction of 0.5 ETH to the crypto exchange Good Cycle, which was swiftly picked up and sent to the address that lost the sum of 10,668 ETH transaction fees on two occasions.

    According to Wu, this move was enough to confirm that the Ethereum address belongs to the Korea-based cryptocurrency exchange.

     

    Recap of the $5.2 Million in Ethereum (ETH) Transaction Fees

    About a week ago, a huge transaction fee of 10,668 ETH worth $2.6 million was paid for transferring 133 ETH, instead of normal Ethereum transaction fee of relatively $0.17.

    This exorbitant transaction fee raised more questions than answers. It got virtually all members of the crypto community confused as to what could have caused such a huge error.

    About 24 hours later, another transaction fee of the same magnitude was reportedly deducted from the same address for sending 350 ETH.

    Meanwhile, the Ethereum (ETH) co-founder, Vitalik Buterin had suggested that the address belongs to a cryptocurrency exchange that was partially exposed to hackers’ perpetration, serving as proof to PeckShield researchers’ claims.

    Vitalik Buterin wrote:

    “So the million-dollar txfees *may* actually be blackmail. The theory: hackers captured partial access to exchange key; they can’t withdraw but can send no-effect txs with any gasprice. So they threaten to “burn” all funds via txfees unless compensated.”




    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Latest News

    Ethereum 2.0 Staking Deposits Surpass 65% of Required ETH As Price Hits $600

    At the time of publication, the Ethereum 2.0 staking deposit contract has surpassed 65% of the required amount of...

    Ripple Has Officially Added Bank of America (BoA) to the List of Top RippleNet Members on Its Website

    Ripple, the San Francisco based blockchain firm, has now officially included Bank of America (BoA) on the list of top RippleNet customers on its...

    Crypto Strategist Scott Melker displays His Bullishness on ADA, ETH, LTC, XRP and Three Others

    A cryptocurrency analyst, Scott Melker, popularly known in the crypto industry as Wolf Of All Streets, has revealed he’s bullish on seven altcoins, including...

    Analyst Says Ethereum (ETH) Could Target $850 Once It Surmounts This Key Resistance

    Virtually all the cryptocurrencies in the market have been enjoying the current price rally that was started by Bitcoin (BTC), the largest cryptocurrency by...

    Ripple Moves to Bring XRP Ledger to the World of Central Bank Digital Currencies (CBDCs)

    Considering the latest job listing, Ripple, the San Francisco based cross-border payment firm, is moving to bring XRP Ledger to the world of Central...

    More Articles Like This