According to reports, the cryptocurrency exchange, Gate.io has received approximately $100,000 from the ETH Classic attacker.
Gate.io is a crypto exchange which was founded in the fall of 2017 and the platform is a part of Gate Technology Inc corporation. The company has tried to reach the attacker but has not gotten any reply back yet. Gate.io believes that the attacker did not mean any harm to the corporation and did not intend to make any profits from the hack but the attacker only meant to make the industry realize the loopholes in the blockchain system and its security, stating:
If the attacker didn’t run it for profit, he might be a white hacker who wanted to remind people the risks in blockchain consensus and hashing power security.
The term white hacker is used for a professional and ethical hacker who gets inside the system of any corporation for the betterment of the company and not for any personal gain. Such hackers point out the loopholes within the system of corporations which need amendments and are often invited by the corporations to implement those amendments and for similar purposes, Gate.io has been constantly trying to contact the 51% ETC Classic attacker but have not been contacted back.
Following these events, the company expects another 51% attack due to the security issues in the crypto industry resulting in massive losses over the years for companies and investors. As a result, the corporation has urged other cryptocurrency exchanges to beware of the current dynamics of the market as there is still evident security threat for the exchanges. For this, Gate.io suggests other exchanges to protect its consumers from such hacks causing damage to the consumer wallets. It mentioned in its report:
Based on our analysis, the hashing power of ETC network is still not strong enough and it’s still possible to rent enough hashing power to launch another 51% attack. Gate.io has raised the ETC confirmation number to 4000 and launched a strict 51% detect for enhanced protection. We also suggest other ETC exchanges to take actions to protect the trader from blockchain rollback/reorg.
The company wishes to protect its customers from any fraudulent activity providing them with the finest facilities. Adding on the note:
Gate.io will keep transparency and provide the best services to all the traders.
Presenting the idea to customers that there will be complete transparency in the systems of the company so that consumers can make the most use of the company’s services and in order to protect the rights of the consumers.
The recent hack resulted in losses for consumers for which the company took complete responsibility, saying, “Gate.io will take all the loss for the users”. This gives the consumers a sense of belief that they are under the protection of a reliable organization that owns the consumer rights.
Moreover, Gate.io also presented an analysis on the alleged hack, concluding that a total of 54,200 ETC in total (worth $271,500 at the time), had been transferred at the time of the hack. More sources reported further news, saying:
Coinbase detected a deep chain reorganization of the Ethereum Classic blockchain. In order to protect customer funds, we immediately paused interactions with the ETC blockchain.
Since unsafe activities were on a loose in the ETC market, other cryptocurrency exchanges mentioned that they halted ETC blockchain related activities to mark their consumers safe. Due to Coinbase’s swift actions, the cryptocurrency exchange points out that “no Coinbase accounts have been impacted by the attack”.
Hence, considering the shape of the ETC market, more 51% attacks are expected to occur on companies who do not have protected security systems and to avoid such damages, cryptocurrency exchanges such as Gate.io and Coinbase have taken progressive steps and have also urged other organizations to mend the potential loopholes in their systems to be safe from any type of harm for companies and their consumers.