Home News Alt Coins $4 Billion Saga Continues: Now EOS Freezes 7 Accounts Compromised in Phishing...

$4 Billion Saga Continues: Now EOS Freezes 7 Accounts Compromised in Phishing Scams

June 20, 2018 11:11
EOS network
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The EOS saga doesn’t seem to be ending anytime soon. After a brief halt of its blockchain due to some critical bug now another issue has emerged due to which EOS has frozen 7 EOS accounts. The accounts, according to block producer EOS42, were subject to a phishing scam so it was necessary to freeze them as soon as possible. The owners of those accounts will now have to provide their consent manually to get those accounts unlocked.

The news came from London based EOS block producer (BP) EOS42. The BP said in a blog post on Steemit that decision to freeze the 7 accounts was taken after a debate of over 2 hrs between different BPs over a conference call. The company said:

“Given the time sensitive nature of this case, Block Producers debated this difficult decision for over two hours today on a call. On the one hand we could protect token holders, on the other this on the surface appears a dramatic overstep of our role in the constitution and BP agreement, which is to be the executor only of arbitration decisions, not to also be judge and jury.”

In case you don’t know, EOS network currently doesn’t have a ratified constitution and arbitration process in place. The BP agreement and codified (but not ratified) constitution both say that block producers can only be the executors of arbitrary decisions. They can’t take the decisions themselves. Had the constitution been ratified by community, this would have been a clear misuse of power. But since constitution has not yet been ratified, EOS42 thought that it would be better to freeze the accounts for security of funds.

The users on Twitter, however, were not very pleased with the news. The reactions were mixed, with some users supporting the block producers for their decision while others suggesting that it would have been better if some arbitrators would have been selected by the stakeholders before taking any decision. Some people also called the decision “total madness”.

What’s next?

EOS42 has also offered a procedure that users can follow to figure out whether their EOS account was compromised or not. If not, they can give their consent to unfreeze the account. A submission has also been filed in EOS Core Arbitration Forum (ECAF) and block producers are awaiting a ruling from the forum to decide the fate of 7 accounts. The constitution of EOS network will also be ratified soon, though no timeline has been set for it as of now.

Technology and business were my core interests, so it wasn't surprising that I got interested in cryptocurrencies, which operate at the intersection of both these things. Now I live my passion by trading cryptocurrencies and covering Cryptocurrency news. You can connect with me on Facebook to learn more about me. :)

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