Bitfly and Binance informed about re-organization and suspension of all transactions related to Ethereum Classic, such as deposits and withdrawals due to recent attacks.
Re-made transaction history is now considered to be the longest in the network, while most Ethereum Classic miners like mining pool Ethermine keep up mining in a shorter version of the network.
Before official Bitfly’s report, the official representatives of Developers behind Ethereum Classic development department told that they got the recommendation to “significantly raise confirmation times on all deposits and incoming transactions” in light of “recent network attacks.”
A chain reorganization takes place when one party gets a bigger amount of hashing capacities that the other ones and can rewrite the chain’s history and “double-spend” ETC. It seems that hashing power on Ethereum Classic has significantly decreased since this Monday. The decrease took place for around 20% from 1.6 TH/s to 1.3 TH/s.
Bitquery analysts think that the second attack is the continuation of the first one which took place between July 29 and August 1.
While Ethereum Classic developers initially said the network did not suffer from the reorganization or a 51% attack in that previous attack, Bitquery also denies the statement of Ethereum classic development department that the attack did not cause financial losses. According to their information, the thieves took more than 800,000 ETC (about $5.6 million) and spend around 17.5 BTC ($204,000) for the purchase of the capacities required for this attack conducting.
None knows financial loss for this Thursday attack. There is only the information that the thieves have topped up their accounts for $93,760 only from block remuneration.
Such a situation has prompted the Ethereum Classic development department to recommend to shift to Besu or Multi-geth implementations the fastest way.
Moreover, the attack has caused the price to decrease by 1%.
Not for the first time
A similar situation occurred at least two times for the previous two years.
During the previous attack, the hackers stole more than 807,000 ETC to several wallets. The hacker started mining blocks after hash power purchase from Nicehash platform user.
On July 31, the hacker wired funds to his wallet through private transactions and then brought transactions back into a mined block.
There is an assumption that stolen money had been withdrawn via Malta-based OKEx.