Gate.io To Receive $100,000 From the Ethereum Classic Attackers

The recent attack on Ethereum Classic network saw three exchanges, Gate.io, Binance, and Birtu losing a ton of money in double spending. However, a recent development suggests that the Hackers behind the 51% attack have decided to return $100,000 to Gate.io according to an article published on the Exchange’s website.

Gate.io Believe The Attacker Was a White Hat Hacker

The Gate.io tried to contact the attackers behind the double spending debacle, which reminds people of the famous DAO attack. However, the company failed to get any response.

However, after the refund of the $100K, many started speculating that the attacker might be a white hat hacker, who did not exploit the limitations of the network to gain for personal benefits, but rather to show the world, how unsafe their digital asset is , and how someone with enough resources can manage to steal their money.

A White Hat hacker plays the good cop, who uses their skill sets to point out technical limitations of institutions and firms, rather than using it for personal gains.

The Ethereum Classic Attack

The Ethereum classic network experienced a 51% attack on its network, which saw the unidentified hacker group manipulate the network into double spending and transfer the ETC from the main network in the meantime.

The attack saw a total of 54,200 ETC tokens worth $271,000 being transferred from the network. Out of these.40,000 ETC were transferred out of Gate.io in double spending.

An attack on the Coinbase network, saw it suspend all Ethereum Classic related activities for the day. A few days later they came out with a statement suggesting that the network suffered $1.1 Million in double spending.

Gate.io also noted that the current hash rate of the Ethereum Classic network was still low and it was possible for attackers to rent enough computing power and stage another 51 per cent attack.

To ensure there is no repeat of the incidence on Gate.io the platform has raised the number of required confirmations for ETC deposit to 4,000. This safeguards against a similar attack for now

Conclusion

The recent 51% attack on the Ethereum Classic Network, saw various Exchanges lose a ton of money in double spending, which was a direct result of the low hash rate on the network. As discussed by the Gate.io the current issues with the network still persist and there is a possibility of another attack.

The developers behind the network need to up their game to avoid refreshing the memories of DAO attack again and again. Hopefully, the network is able to take enough measures in time to avoid any further attacks like the recent one.