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

roodeetoodee Jul 18, 2017 4:04 AM Permalink

Scammer doesn;t need to cash out the coins directly. Just put a big short on via a CFD and then sell those fuckers in a light trading period. Crash the market for a bit and take an easy peel.

allgoodmen Jul 17, 2017 8:00 PM Permalink

Tmosley. Dude. You're embarrassing yourself. You're coming across like a delusional street preacher in a heckling crowd.

Better days are coming for crypto. But it ain't gonna be this day and it ain't be because of your rantings.

kc_kilo Jul 17, 2017 2:59 PM Permalink

LTC only got down to 35. It never really crashed at all. Safe to buy in the 40's but dont expect huge gains anytime soon. BTC will be fine and bounce right back to 2500+. Until the icos get exposed ETH is poised for extreme voltality (bought more at 150) but wouldnt surprise if it gets under 100 until it matures as a real technology with companies implementing in a real market.

kc_kilo T-NUTZ Jul 17, 2017 3:03 PM Permalink

Dont get a hardon, it can reverse 30% in a hour. Real question is how much profit did you make off this minor rise? Did you buy low, sell high? im holding for a few months to see how Aug pans out.  Even a 30 dollar swing in ETH is difficult to post profit adter adding the trading fees, and if you mis-time you are fucked and have to hold. If you bought before Mar no one cares you bought at 15, good for you but call it luck not skill....

In reply to by T-NUTZ

Schmuck Raker Jul 17, 2017 12:27 PM Permalink

Sounds like a pretty stupid idea to begin with:"CoinDash is developing a platform that will allow users to manage their investment portfolio and benchmark it against other traders and the market in general."

Global Douche CHoward Jul 17, 2017 5:22 PM Permalink

Maybe for THEIR shit. It is an ICO after all, right? I've been avoiding those since it violates one of my personal rules to not trust any pre-mined coins, tokens, etc. especially for anything brand new with the ink not even dry. Many of these have that distinct stench of a Nigerian Prince who overwhelms the entire room every time he opens his mouth.You still get an upvote because your gut feeling about what is being messed with is likely spot-on.With Bitcoin, it's miners whom earn a reward in BTC so be careful not to clump in everyone to the same class as it just ain't so. Admittedly, as of late, these miners have been doing a bullshit job. The general "Hodlers" of BTC understand this.My "Meh!" gut feeling is of course paying off. BTC is approaching $2200 USD on Bitstamp, a decent swing shy of 20% over the last 24 hours. Not a bad day in the office!

In reply to by CHoward

jmack Jul 17, 2017 12:08 PM Permalink

All the PM guysare laughing, but isnt this tantamount to the midget stealing a bucket of gold off a tail gate?   I am not particularly pro-bitcoin or its clones, the concepts are appealing but as with any new tech, the implementation requires a lot of work, so I dont have a monetary dog in this fight,  but the self righteousness and desperate superiority strikes me as a bit of jealousy.  But yea, the frothy volatility in crypto currencies and ICO's is worthy of disdain, just as the snaps and blue aprons are as well.

bshirley1968 tmosley Jul 17, 2017 12:49 PM Permalink

Aren't you so clever.....you and your predictions......you and your smart money just waiting for better prices.  Shit, we should just start calling you the Crypto Oracle.Riddle me this, dipshit.  Why would it pull back?  Has something changed in bad ole fiat banking world?  Has the world all of a sudden been made right and there is no need to move you money to "safety" or digital "liquidity".I would love to hear you grand prognostication of why the latest and greatest in the world of money needed a frickin' "pullback".  Is this a currency or a stawk?  What it is, is just a new game at the old casino.  Pullback?  That't funny, right there.

In reply to by tmosley

tmosley bshirley1968 Jul 17, 2017 1:08 PM Permalink

Hahaha, Christ, you are really pathetic.As was said on these very pages by many, including myself, the pullback came from ICOs cashing out their bitcoin and ether investments for dollars to fund their capital expendatures. Other factors were and are the upcoming potential hardfork in Bitcoin and people who are used to the ups and downs in the crypto space seeing a falling price and hopping out, hoping to buy back in later at a lower price, as has been the pattern for the last 8+ years.But you are a person absolutely consumed by cognative dissonence, so I don't think you will even be able to read any of that. Like, literally unable to comprehend the words.

In reply to by bshirley1968

tmosley Herd Redirecti… Jul 17, 2017 2:33 PM Permalink

Rising prices create a lot of interest. This is normal. I told people to buy a little immediately in case it went to the moon, and wait for the pullback to put in the rest, and gave price targets. I recall the crypto brigade approving of the strategy, so I presume there wasn't much disagreement from them.What a lot of people call "pumping" is just excitement. I used to be excited about silver, because it had a lot of factors that looked like they would take it much, much higher soon, and monetary factors that would bout it in the longer term. But those fizzled, and crypto has hijacked the monetary factors. Time to face facts. The price of energy is falling, and automation is rising, which means that mining is getting easier and cheaper by the day. Industrial users have made deals with mines for silver, bypassing the exchanges, so it doesn't matter if there is silver there or not.It was god damned hard to abandon ten years of financial and emotional investment in silver, but it looks like it is going to pay off. Hard to see a long term bear case, as all the long term factors supporting gold and silver RE the dollar and other fiat also favor crypto, and then the fact that crypto by its nature is much more similar to what people are used to working with. Also can't be salted with tungsten/lead.

In reply to by Herd Redirecti…