Here’s an unfortunate truth: ICO hacks are part of the initial coin offering ecosystem. CoinDash learned this lesson the hard way when someone siphoned $7 million from its ICO.
ICO Hacks: Manipulated Email Leads To Breach
A self-described social-trading platform, CoinDash planned a 28-day ICO in the hopes of raising $12 million. But a hacker spoiled the plan by grabbing $7 million from investors in a mid-transaction scam.
How’d they do it? An unauthorized party altered the ETH address the funds were to be sent to. When CoinDash learned of the problem, it immediately halted the sale.
Thankfully, stakeholders will not lose money; CoinDash is honoring all investments, even for individuals who inadvertently funneled coins to the wrong email address. Presumably, though, it may take a little time to sort out.
When asked about the incident, a CoinDash spokesperson persevered:
“This was a damaging event to both our contributors and our company, but it is surely not the end of our project. CoinDash is responsible to all of its contributors and will send coins ‘reflective of each contribution.’”
Contact A Blockchain Attorney
Kelly / Warner works with blockchain based startups. If you’re interested in speaking to an attorney about the ins-and-outs of blockchain or coin offerings get in touch today. We’ll guide you through the process and assess the specifics of your situation to ensure you’re structuring your sale in the best way possible.
Arnold, A. (2017, July 17). CoinDash Says Hacker Stole $7 Million at Initial Coin Offering. Retrieved July 25, 2017, from https://www.bloomberg.com/news/articles/2017-07-17/coindash-says-hacker-stole-7-million-at-initial-coin-offering