Hackers Threaten Ethereum Consumers for $5 Million, Report States


Over the past two days, three Ethereum users have spent more than $5 million to pay for network services, which is now indicated in the report as blackmail.

Over the past two days, one user on the ETH blockchain network has paid a whopping $5.2 million for two small transactions totaling less than $500. Another user paid $500,000 for a similar small transaction.

Three abnormal transactions caused blackmail or speculation with errors among cryptography experts. According to Dovey Wan, the founding partner of Primitive Crypto, ridiculous transactions are not caused by an error in the blockchain, but rather by a hacker message. “The [wild] speculation [this] of certain exchange/wallet / ETH services was“ stolen ”by a hacker,” he tweeted earlier on June 12th.

According to PerkShield, a blockchain-based analytics company based in China, transactions could be “gas price blackmail launched by hackers.” The company claims that hackers gained access to some accounts, but could not send funds from these accounts to their accounts due to the multi-signature function of accounts. This feature requires multiple passwords to send funds.

However, hackers found that the accounts have addresses in the white list to which they can send funds without calling the multisignal function.

Realizing this, they began to send excessive gas fees to blackmail account holders so that they parted with money and transactions ceased.

The hack method used is a classic phishing attack, where hackers use fake websites to steal login information and then send small amounts, but huge fees.

Hackers Blackmail of Exchange
According to the paper, the hackers began using a phishing attack (where they fake a website or an email to try to obtain credentials) to obtain some form of access to the exchange. It worked, they had some of the permissions to send a deal. Yet a question came up.

There was a multi-signature authentication environment to the trade. This means you will need multiple keys (like passwords) to send the money. So, it seemed like they could do nothing.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.