An anomaly in one of the most important portfolios within the blockchain of Ethereum caused the funds deposited there to freeze, affecting about 500,000 ETH, equivalent to about 150 million dollars.
Parity Technologies revealed the problems it was experiencing through its blog. The firm, based in London, United Kingdom, reported that the event affects the multiform portfolios handled by Parity, a technology that uses the consent of several parties to obtain additional security in transactions, and that serves for the management of tokens created from Ethereum ERC-20 protocol.
It is not the first time that happens, since Parity had to correct its previous version for a bug, launching the updated product from July 20. This is the version that has been compromised with the new error, although a new version of the Parity Wallet contract was implemented, putting at risk the funds of the clients and especially those of the Initial Currency Offers (ICO) made since then and whose main wallet is that of Parity. According to his blog, the bug was triggered "accidentally".
That code still contained another problem: it was possible to convert the Parity Wallet library contract into a normal multi-signature wallet and become an owner by calling the initWallet function. It seems that the problem was unintentionally triggered on November 6, 2017 at 02:33:47 PM + UTC and, subsequently, a user committed suicide with the library converted into a wallet, erasing the code of the library that in turn rendered all the multi-signature contracts.
Security alert
Parity
Recall that with the previous error modifications were made to the wallet code to avoid new failures. Then a hacker took advantage of a small breach in the Parity 1.5 wallet, to drain portfolios of the Aeternity, Swarm City and Edgeless projects. and at that moment the losses were estimated at 30 million dollars; today the figure is 5 times higher.
A USER ASSUMES RESPONSIBILITY FOR THE "ACCIDENT"
Through Twitter the user @ devops199 claimed to have been the author of this incident that caused the "accidental" freezing of the funds, since he was investigating the wallet code. First published an entry in GitHub, stating that anyone can "kill" the contracts signed by Parity, and then began to make a series of tweets in reference to the fact:
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However, and despite the suspicions about the intentionality of the "suicide" of the Parity portfolio bookstore, Devops was upset by what happened, even asking in the internal chat of the wallet if he would be "arrested" for this.
SOME AFFECTED AND OTHER REACTIONS
Ironically, Parity's ruling has affected Polkadot, a project to link private and public blockchains, that more than 140 million in its ICO, and that was initiated by Parity's own co-founder, Gavin Wood, reporting the bad news to its investors via Twitter.
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Some sources indicate that around 60% of the total collected by the company may be affected.
ICONOMI was also affected, although it clarified that the funds and assets of the clients were safe, said that part of the resources of the company if they have been frozen after the event, and that they will not be able to mobilize until solutions are given. . But there have been a significant number of companies that announced no damage after the attack, such as OmiseGo, as well as 0x, Lykke, Distric0x, Matchpool, Airswap, among others.
Given this, the Ethereum ether price retracted by 3%, standing at 292 dollars at the time of writing this article, and with a market capitalization of 27,984,713,812 dollars, increasing the disadvantage of the cryptoactive against Bitcoin.
Damn, that's crazy
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