As a crypto investor who lived through the Parity Multisig Wallet hack in 2017, I can’t help but feel a mix of emotions reading this latest development. The news that the hacker has resurfaced and is attempting to launder stolen Ethereum worth $9 million through cryptocurrency exchange eXch is both shocking and disheartening.
Based on Cybers Alerts’ findings, the hacker who pilfered approximately 150,000 ETH ($9 million at current value) from Parity Multisig Wallet version 1.5 in 2017 has reemerged, transferring the stolen Ethereum to cryptocurrency exchange eXch.
I’ve analyzed the situation and found that a hacker currently holds the reins over 83,017 Ether, equivalent to approximately $246.6 million, which were taken in the 2017 security breach.
$9M Worth of Ethereum Laundered
X’s Cybers Alerts blog post recognizes the hacker’s impressive perseverance, making it a notable milestone in cryptocurrency annals. The criminal initiated the laundering process for 3,050 ETH, valued at around $9 million, via eXch, utilizing multiple consolidated wallet addresses.
In 2017, a weakness in the Parity Multisig Wallet version 1.5+ resulted in the loss of more than 150,000 Ether, equivalent to around 30 million US dollars at that moment.
The individual responsible for this cryptocurrency heist has shown exceptional levels of perseverance, making it a notable event in the annals of crypto history. Currently,…
— Cyvers Alerts (@CyversAlerts) May 13, 2024
I analyzed an incident that occurred back in July 2017, and I traced it to a defective piece of code in a smart contract called wallet.sol. This issue impacted version 1.5 and onwards of Parity’s digital wallet software.
A skilled hacker discovered a programming error introduced by someone else, exploiting which they could reset the digital wallets, rendering them as good as new. This weakness gave the malicious user the power to seize control over victims’ wallets through a solitary transaction.
As a data analyst, I can tell you that an incident occurred resulting in unauthorized access to a system and the theft of approximately 150,000 Ether units. At the time, this amount equated to around $30 million based on Ethereum’s value. However, considering the current market prices, the stolen Ether is now valued at a staggering $442 million.
Parity Technologies, the organization responsible for the impacted digital wallet, categorized the issue as highly significant and released announcements urging individuals who hold funds in multi-signature wallets to move their resources to safer locations.
As a researcher, I’ve discovered that white hat hackers successfully retrieved 377,000 ETH, which were in danger due to the same vulnerability. This recovery effort brought some solace to the affected users.
Analysts Advocate for Robust Coding Standards
Experts from OpenZeppelin, a renowned blockchain infrastructure provider, shared their perspective on how to prevent similar attacks in the future. They strongly advised against using specific coding techniques, particularly the “delegatecall” function, which acts as a one-size-fits-all forwarding mechanism.
In addition, they stressed the significance of adhering to strong coding practices within the Ethereum community. Neglecting these guidelines could lead to serious repercussions, including issues arising from seemingly insignificant glitches.
Parity Technologies, renowned for their work on the Polkadot blockchain and Ethereum’s Parity Ethereum client, specialize in creating multi-signature wallet solutions, including Parity Wallet.
Smart wallets, functioning as multi-owner smart contracts, facilitate the administration of cryptocurrencies by means of an agreed consensus among various proprietors. These wallets provide functionalities like daily withdrawal caps, decision-making tools through voting processes, and the ability to transfer ownership.
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2024-05-15 01:25