Vitalik Buterin Backs Exchange GasPrice Ransomware Theory For High Transaction Fees

• Recently, the blockchain security company PeckShield analyzed that the sky-rocket transaction fee transfer on Ethereum Network is a GasPrice blackmail attack.
• Over a few days, the heavy transactions spotted on Ethereum Network have astonished the Ethereum Community.
• Today, the co-founder of Ethereum Vitalik Buterin shared on Twitter, explaining that hackers had captured partial access to the exchange key.

Recently, the blockchain security company PeckShield analyzed that the sky-rocket transaction fee transfer on Ethereum Network is actually a GasPrice blackmail attack. The hackers introduced this attack to the exchange.

Analysis done by PeckShield on the recent two major ETH transfers. This may be a GasPrice ransomware attack launched by hackers targeting the exchange. @thomasheller_ @celiawan2 @bitentrepreneur @sallywang666 @tzhen https://t.co/ve16ImVQsl

— Minion (@0xminion) June 12, 2020

An Expensive Week For Ethereum Community

Over a few days, the heavy transactions spotted on Ethereum Network have astonished the Ethereum Community. However, around 20,000 ETH paid as a transaction fee. In which, the value transferred was only 350 ETH and 0.55 ETH respectively.

Besides this, the crypto community reacted that the transactions mistakenly occurred, mixing up the fields on value.

Today, the co-founder of Ethereum Vitalik Buterin shared on Twitter, explaining that hackers had captured partial access to the exchange key. Also, it is a ransom by hackers who obtained unauthorized access to the wallets.

So the million-dollar txfees *may* actually be blackmail.

The theory: hackers captured partial access to exchange key; they can't withdraw but can send no-effect txs with any gasprice. So they threaten to "burn" all funds via txfees unless compensated.https://t.co/kEDFGp4gsQ

— vitalik.eth (@VitalikButerin) June 12, 2020

Furthermore, Vitalik, in his theory, disclosed that hackers could not withdraw, However they can transfer “no-effect txs” with any gas price. Additionally, he related the incident with the one that happened with scorched earth games.

PeckShield’s Analysis: GasPrice Theory

Moreover, the PeckShield has floated few reasons for the attack that included;

1. The exchange’s main body address hacked for phishing.

2. There may be a possibility that the exchange’s private key has multi-signature verification features.

3. Maybe the hackers realize that they could control the GasPrice Permissions, etc.

Though the actual issue still not confirmed, these human theories are just assumptions. Hacking and blackmailing are very common issues in the crypto ecosystem. In short, the Ethereum high transaction fees issue remains unsolved and particularly strange.

Priyanka Kulkarni