Update on CoinDash hacked:
A follow-up message about the CoinDash website being hacked has been posted. The firm said that it will get the website back up soon and release an official announcement about the hack. It also said that all investors who participated, both with the correct and fraudulent email addresses, will get their CDT.
At this time, it’s unclear just how much money the hackers got away with, but Etherscan estimates it to be in the millions of dollars, possibly more than $7 million from more than 2,000 transactions. Blockchain and cryptocurrency watchers have been quick to lash out at the firm for its apparent lack of cyber-security. Investors are advised to keep an eye on the firm’s Twitter account for the latest updates about CoinDash being hacked.
The Token Sale is done, do not send any ETH to any address. Official statement regarding the hack will be released soon.
— CoinDash.io (@coindashio) July 17, 2017
The CoinDash website has been hacked, and anyone who has sent their money to the company’s crowd-funding page may have already lost their investment. Investors are receiving an urgent message that the CoinDash website has been hacked. It tells them not to send any more money to Token Sale page because it has been “tampered” with.
CoinDash is a blockchain startup, and currently, the CoinDash website is just a log-in page asking for the user’s Google sign-in info and giving a very short description of the company. The firm focuses on cryptocurrency social trading and offers portfolio management tools for those who invest in various forms of cryptocurrency, which includes ethereum and bitcoin. It aimed to offer cryptocurrency traders the same types of services available to currency and contract for difference traders.
Obviously, we strongly suggest that you don’t sign in due to the cyber-breach. We also advise against sending any email to the email address listed on the website because of the nature of the hack.
Emergency message about CoinDash website hack
A world of cryptocurrency investors was watching and sending money today for the firm’s Token Sale. It was set up to $12 million in a Token Sale that would last for 28 days or until that amount was raised, whichever came first. The Token Sale is what’s known in the cryptocurrency world as an ICO, or initial coin offering. In some ways, an ICO is comparable to the stock market’s initial public offering.
However, this morning some investors were greeted by an emergency message about the CoinDash website being hacked. It advises everyone to stop sending their money “to an unauthorized ETH address.” The firm said that it “seems” like its Token Sale page “was tampered [with] and the sending address was changed.” It advises all investors to stop sending funds to any email addresses until it gives the all clear. CoinDash also states that it is “examining the situation and will shortly send further instructions.”
Details on CoinDash’s ICO
Now that CoinDash was hacked, its reputation has been knocked down several notches. However, before the CoinDash website was hacked, the company was making quite a name for itself, having secured three major investments from institutional investors in a matter of months.
Blockchain accelerator Coinsilium and well-known Chinese cryptocurrency investor Fintech Blockchain Group both backed the firm. HyperChain Capital, a hedge fund that’s based on blockchain tech, also provided an investment to support today’s ICO. Token-as-a-Service, a tokenized closed-end fund also focused on blockchain markets, invested 500 ethereum in the firm’s pre-Token Generation Event leading up to today’s ICO.
The ICO was supposed to be the general public’s opportunity to invest in CoinDash. Unfortunately, the earliest investors in the firm’s ICO have been scammed, however. To invest in the firm’s ICO, investors were told to send ethereum to the smart contract address. According to the emergency message stating that the CoinDash website was hacked, the address was changed, so it seems that early investors have been sending their ethereum directly to the hackers.
Unfortunately, a hack like this one was probably inevitable, given that cryptocurrency has grabbed the spotlight with firms like Tezos being able to raise more than $200 million over four days in its ICO.