Vitalik Buterin Backs Exchange GasPrice Ransomware Theory For High Transaction Fees

12593556_10205735480657537_3835976740831778163_o
Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • 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.

An Expensive Week For Ethereum Community

Advertisement


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.

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.

Hot News

Coinbase Effect Pumps Band Protocol (BAND) More Than 40%

The band protocol has seen a 45% rise following its listing on Coinbase pro. Coinbase officially announced that starting from August 10,...

Wall Street’s Interest In Cryptocurrency Could Attract Institutional Investors

The Bitcoin prices have rallied to create new records to hit the year high of $11,000 on August 2, further strengthening to above...

ViaBTC CEO Has Announced His Plans Of Considering a BCH Hardfork, Bitcoin Cat

Haipo Yang has been considering building a new Bitcoin fork that is derived from Bitcoin Cash. As of now he has named it...

BaFin Closes All Unauthorised Crypto ATMs In Germany

BaFin has recently shut down all Bitcoin ATMs across Germany. Few months back BaFin had banned all the unauthorised cryptocurrency ATMs under the...

Dan Morehead, CEO, Pantera Capital, Predicts Bitcoin Markets to Stay Bullish in 2020

Dan Morehead, CEO, Pantera Capital, chanced upon Blockchain, was fascinated by it, and never went back to engineering. Pantera Capital became the first...

Crypto Derivatives, ETH Futures Sees an All-Time High

Digital currency derivatives were booming for the past two weeks and on Sunday Ethereum future contracts set an all-time high. Debrit, a popular...

Partners

RELATED NEWS

Coinbase Effect Pumps Band Protocol (BAND) More Than 40%

The band protocol has seen a 45% rise following its listing on...

Wall Street’s Interest In Cryptocurrency Could Attract Institutional Investors

The Bitcoin prices have rallied to create new records to hit the year...

ViaBTC CEO Has Announced His Plans Of Considering a...

Haipo Yang has been considering building a new Bitcoin fork that is derived...