Hacker breaches CoinDash and steals USD 7 mln worth of Ethereum

According to Bleeping Computer, the hack took place immediately after the company launched its ICO and replaced the official Ethereum wallet address with his own. Many startups today use ICOs to raise funds in the form of cryptocurrency. An ICO happens at predetermined dates when companies publish a cryptocurrency address on their websites, and people start sending funds. After the ICO, the company issues tokens in return, which are the equivalent of real-world stocks.

The company says it received around USD 6 million worth of Ethereum in the first three minutes, before the hack, the online publication continues. The hackers Ethereum wallet shows a balance of 43,438 Ethereum, which is around USD 7.8 million. CoinDash estimates that around USD 7 million of these funds came from its users.

When the company discovered the hack, it shut down its website and announced users about the incident and the end of the ICO.

In an official statement, CoinDash has agreed to issue tokens to almost all the people who sent money to the hackers wallet. However, transactions sent to any fraudulent address after the website was shut down will not be compensated.