A popular crypto exchange, EtherDelta got hacked on Wednesday tricking users into directing their tokens to the wallet of the hacker instead of the authorized exchange.
EtherDelta, a decentralized exchange which lists almost all forms of Ethereum based tokens in operation suffered a tremendous setback when approximately 308 ETH tokens valued at $266789 was stolen along with a significant number of tokens which was potentially worth a handsome amount of dollars. Compared to other bigger exchanges, EtherDelta does not boast of a huge volume. But it is an essential first step taken up by traders after generation of a new token following an ICO. However, the smart contracts which govern the behaviour of EtherDelta was not compromised by this attack. Rather the hacker managed to find a way to take over the DNS server of EtherDelta and serve visitors with a fake version of the same.
Compared to common phishing attacks, this is considered to be a far more dangerous instance. Here a fake website in created having a domain name similar to the original one like etherrddeltta.com. Customers who visited the original website of EtherDelta in the afternoon on Wednesday ET time were served with a convincing yet partially functioning version of the site. Technical saviours managed to revert back the website to safe harbour within a span of few hours with the proper site restored. However, users who had already interacted with the fake website had sent ether or other similar crypto tokens over to the hacker’s fake site. The warning issued in this regard have not been lifted till now branding EtherDelta under temporary quarantine mode and being unsafe for usage.
The public nature of Ethereum’s blockchain aids us to understand how the funds were shifted in and out from the hacker’s web address. The flow of ether and tokens occurred from 1:40 p.m. ET up to roughly 8 p.m. ET. The bulk funds were moved by the attacker to other addresses at about 1:30 a.m. ET on Thursday. Users can interact with EtherDelta in a variety of ways, either via Ledger Nano S hardware wallet which is known to be the safest way, or via a software wallet such as Metamask which is comparatively less safe or finally by just entering your private key into the site itself which is the least safe way. The exposure of private keys to the hacker can be a possibility but its difficult to draw a conclusion regarding the same.
In the aftermath of this hacking it is only obvious that a large number of users would transfer their funds from the wallets used to interact with EtherDelta into safer options. Users can verify the state of wallets used to collaborate with EtherDelta at the website deltabalances.github.io. At a time when Bitcoin, the leading cryptocurrency is showcasing a bullish run, hackers might ruin its dream run by increasing the stringency of regulatory glares if more such notorious hackings follow suit. This also comes as a warning for those who are shying away from the dangers of cryptocurrencies given its mammoth return figures.
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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.
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