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ETC Deposits and Withdrawals Halted by Coinbase and Kraken, 51% Attack Still Seems to be Going On

January 09, 2019 11:33

Ethereum Classic deposits and withdrawals have been halted on Coinbase and Kraken amid signs of a double-spend attack. More details still coming out.

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Ethereum Classic might have refuted the rumors of a double-spend attack yesterday, but the saga doesn’t seem to be coming to an end as of now. There are still some signs that the attack may be going on, and as a result, two major exchanges (namely Coinbase and Kraken) have disabled ETC on their respective platforms. You can see the statements of both companies below.

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As you can see, Coinbase said in its statement that it has detected a deep chain reorganization of the network with double-spending of ETC coins worth more than $500,000, which seems to suggest that a 51% attack may still be going on. Kraken also declared on its that a 51% attack is still going on the network, and as a result, the company is disabling deposits and withdrawals of ETC while trading continues for now.

In short, all doesn’t seem to be well on Ethereum Classic network despite their development team claiming otherwise. In fact, the ETC development team has itself started pulling its feet backward since yesterday. You can see below how the narrative has changed over the course of last 24 hrs.

First of all, the team asked exchanges to significantly increase the confirmation time for all withdrawals:

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Then they said that they’re working with Slow Mist (the Chinese firm that first reported the attack) and others in the community to figure out what’s going on:

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Then after some time ETC team said that they’ve found from where the additional hashrate came. They attributed the hashrate to Chinese mining equipment maker Linzhi’s testing of new ASIC mining machines aimed at the mining of ETC.

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However, soon after that Coinbase detected double-spends and halted the movement of ETC funds. ETC team said on its part that since Coinbase didn’t connect with them in this regard, they can’t comment much on the matter.

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And now finally a few hours back they’ve said that they’re not making any attempts to downplay the events. Linzhi is indeed testing ASICs, and Coinbase might also have detected double spends. Both these things may be true.

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If a 51% attack has indeed been executed successfully on Ethereum Classic network, it will be a technical failure of very high degree that can take the toll not only on the price of ETC but also on the price of other cryptocurrencies. We’re keeping an eye on this development and will let you know more as the story unfolds.

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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