Over $7 Million Stolen After CoinDash Initial Coin Offering Hacked

It was bound to happen: after hundreds of millions of capital was raised through "Initial Coin Offerings", with the recently concluded Tezos coin offering raising a record $232 million in 2 weeks, it was inevitable that (at least) one would get hacked. On Monday morning, that's precisely what happened to CoinDash, a blockchain startup focusing on "cryptocurrency social trading and portfolio management platforms", which sent out an urgent warning to investors advising of a severe cyber security breach of its crowdfunding page.

Apparently the hack involved switching over the legitimate address to a fake one, to which "investors" were sending their funds. The CoinDash warning reads:

This is an emergency message delivered to you in order to stop you from sending your money to an unauthorized ETH address. It seems like our Token Sale page was tampered and the sending address was changed. Please stop from sending your funds to any of the addresses until we say otherwise. We are currently examining the situation and will shortly send further instructions.

The site also issued a follow up announcement:

CoinDashers, soon we will get the site back and release our official announcement about what just happened. Everyone who participate, both with the right & fraud address will get his CDT. Pleases be patient as we are trying to make things clear

Less ambitious than the Tezos offering, the CoinDash Token Sale only started a bit earlier today (July 17th, 2017), and was supposed to last for 28 days or until the funds raised reach a $12 million hard cap.

This is what the ICO's bonus structure was supposed to look like:

  • First day bonus – 30%
  • First week bonus – 20%
  • Second week bonus – 10%
    Rest of the Token Sale period bonus – 0%

However, it was not meant to be, and moments ago the startup tweeted that "The Token Sale is done, do not send any ETH to any address. Official statement regarding the hack will be released soon."

Some background on this particular ICO and statup, courtesy of Finance Magnates, which recently conducted an interview with CEO Alom Muroch:

The Coindash platform will enable cryptocurrency investors to manage and analyze their portfolios, share insights about the market and display achievements, as well as copy-trade and receive trading signals.

 

Coindash’s current partners include CryptoCompare, Smith & Crown and RSK Labs, WINGS, ethere.camp, Antshares and HyperChain Capital. Back in May 2017 Coinsilium Group Limited (NEX:COIN), the London-based blockchain venture investment fund, confirmed that it has completed its investment of $75,000 in Coindash.

The scammer’s address has been quickly tracked down: https://etherscan.io/address/0x6a164122d5cf7c840d26e829b46dcc4ed6c0ae48

While the monetary damages have yet to be confimed, according to Etherscan it appears that over $7 million was already "stolen" in 2130 transactions, as a result of the address redirection hack.

Comments

SILVERGEDDON Zero_Ledge Mon, 07/17/2017 - 13:40 Permalink

tmosley is an ex silver pumper who lost his ass on his extensive silver purchase history going all the way back to - wait for it - 2007 !He returned to Zero Hedge a few months ago, pumping crypto currency like the Second Coming of Christ. That's when I knew anyone buying into crypto was just feeding a blow off top. The shove rounded gold taels up the ass comment was his derisive reply to a gold holder's desire to keep on buying gold as a safe haven in a thread last week. He doesn't live in the real world any more, and has nothing but nasty for anyone pointing out his transparent nasty nature. Once, he was a great intellect. Now, just an errand boy for the POTB.   

In reply to by Zero_Ledge

tmosley SILVERGEDDON Mon, 07/17/2017 - 13:47 Permalink

I never left you dumb fuck. I did spend more time at tfmr for a while, but that time ended YEARS ago.I also find it funny that you idiots who continue to be bullish silver are mad at me for having pushed silver in the past. Talk about fairweather friends. You guys are like liberals. Say something against the party line and its ATTACK ATTACK ATTACK.You have no arguments. You are just signalling your anti-crypto, pro-pm virtue, and the fact that you are extremely triggered. It's absolutely pathetic.

In reply to by SILVERGEDDON

SILVERGEDDON tmosley Mon, 07/17/2017 - 14:12 Permalink

You fucking well vanished, evaporated, vamoosed after the silver top. You reappeared pimping crypto currencies big time starting less than a year ago. I don't give a shit about gold, silver, or crypto, from a loyalty standpoint.For me, t is all about safe sound investment for life, not some quick get rich scheme that benefits a few at the expense of the many. I do favor commodity based investing as a safe haven from inflation, currency devaluation, and government stupidity.This opinion is based on the historic track record for governments, banks, taxation, interest rates, and fiat currency failure rates over the last 5000 years or so. You got a problem with some one having a contrary opinion to yours ? Too fucking bad. Your crypto currency pumping is as disingenuous now as your silver pumping was back in the day, in my opinion. I will continue to ask people to take a long hard look at what theay are investing in, and the risks implicit in highly volatile experimental fringe element currency equivalents.  " extremely triggered " What a quaint special smowflake remark. 

In reply to by tmosley

Zero_Ledge tmosley Mon, 07/17/2017 - 16:10 Permalink

Best case scenario is that blockchain technology is actually useful. In which case anyone can create and use it, including VISA (accepted everywhere), Amazon, FB, heck maybe even IBM would like a slice of the secure contract pie.  The only thing of fundamental value is the computational resources and storage, which are already far, far, far cheaper than using any currently available coins.  Furthermore 99.9% of consumers and businesses would much prefer a small fee based system for transactional security.  Some business that bought ether before the weekend for a transactional purpose experienced 50% inflation.  Ouch.  Terrible model. 

In reply to by tmosley

King of Ruperts Land SILVERGEDDON Tue, 07/18/2017 - 00:35 Permalink

"For me, t is all about safe sound investment for life, not some quick get rich scheme that benefits a few at the expense of the many. "

Invest in the inventory and fixtures of a corner store. Keep the milk fresh and at cost and make money on the cigs and lotto tickets.

Most on this site are gamblers and speculators who use the word "investment" and "investing" very loosely.

In reply to by SILVERGEDDON

a Smudge by an… Erek Mon, 07/17/2017 - 12:08 Permalink

Totally. What a way to start the day. ONOZ! Another bad day for crypto! Let's see how bad this is. Flawed implimentation, inviable software or......somebody left the wordpress password on a napkin????And nobody noticed that the......wait seriously NOBODY NOTICED THAT.....THE PUMP WAS RUNNING BUT THERE WAS NO GAS IN THE FREAKING TANK?Sometimes it's the little things that get ya. And sometimes 7,000,000 little things get ya.

In reply to by Erek

kc_kilo 38BWD22 Mon, 07/17/2017 - 14:49 Permalink

The ico's are a joke and unless you are experienced in that realm you will lose all your money. They are just moonshot ideas with no products, services, ciustomers, products or patents. Most of their true believers will hold forever. Until something gives a true price of ether will never be found. 135 was the recent low, up to 175 today.

In reply to by 38BWD22

OverTheHedge 38BWD22 Mon, 07/17/2017 - 15:23 Permalink

I think people are losing sight of what a cryptocurrency claims to be, as opposed to what it actually is at the moment. I would be happy to use a cryptocurrency as currency, except it is insanely volatile. When it has matured sufficiently to be at least close to "normal" currencies, then I will be happy to embrace it. In the meantime, I don't want to "invest" in something that gains and loses such colossal amounts on a daily basis. I could put a trivial amount in for "fun", but I hate losing far more than I enjoy winning, and if it's a trivial amount, what's the point?

In reply to by 38BWD22

TheReplacement konputa Mon, 07/17/2017 - 12:44 Permalink

To be fair, it was the website that was hacked, not the ico or blockchain or anything else.  Hell, it just a simple substitution of one eth addy for another.  It would be like changing the mailing address for cash payments to Chase or something lol (or maybe I'm thinking another bank that doesn't accept cash - for the irony). Crytpocoins are not money.  They are electronic currency.  Nothing more, nothing less.  Got electric?  Good, still in biz.  Got electric?  No, too bad so sad.   

In reply to by konputa