CoinDash hacked: Fraudsters stole $7 million by hacking a cryptocoin offering

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  • $7 million worth of ethereum was stolen in about half an hour.
  • CoinDash said it will provide tokens to buyers except those who invested after its site was shut down.

Visitors to the CoinDash website site had been told to send their ethereum to another address in order to participate in the ICO. People who followed those instructions had their money stolen, according to the website. It only took about half an hour and more than $7 million was routed to the hacker. According to Etherscan, some 2,130 transactions took place.

Start-ups building on blockchain are raising millions of dollars in exchange for tokens that give buyers future access to their network once it’s up and running. The tokens also rise and fall in value and can be bought and sold, giving them characteristics of unregulated securities.

CoinDash said in a statement on its website that it will provide tokens (CDTs) to people who sent ethereum to the fraudulent address prior to the CoinDash site being closed down. But transactions that took place after the site was shut “will not be compensated,” the company said.

This was a damaging event to both our contributors and our company but it is surely not the end of our project,” CoinDash said. “We are looking into the security breach and will update you all as soon as possible about the findings.”

Source: cnbc News.

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