Eth Classic Suffers Second 51% Attack in a Week

Ethereum Classic Suffers Second 51% Attack in a Week

Mining pool Ethermine’s parent entity Bitfly and crypto exchange Binance reported the reorganization, announcing all Ethereum Classic payouts, withdrawals and deposits had been suspended due to the attack.The reorganized transaction history is currently the longest chain on the network. However, the majority of Ethereum Classic miners are continuing to mine on the shorter version of the network.

A chain reorg occurs when one party gains more of the hashing power than the rest of the network .The controlling miner can then rewrite the chain’s history and “double-spend” the blockchain’s native currency .While Ethereum Classic developers initially said the network did not suffer from a reorganisation or a 51% attack in the previous attack, Bitquery claimed  that an attacker had double-spent  over 800,000 Eth Classic with an estimated value of around $5.6 million, and paid about 17.5 BTC worth around $204,000 to acquire the hash power for the attack., a very profitable investment indeed .

The attack follows the deprecation of the OpenEthereum client on July 16. Nearly half of the network’s nodes .Including important mining and exchange connections, operated on OpenEthereum software had became immediately outdated following the first chain reorg on July 31..

During this latest attack, the perpetrator moved over 800,000 ETC from an unspecified crypto exchange to several wallets between July 29-31, according to Bitquery..

Ethereum Classic developers have urged node operators to switch to Besu or Core-geth implementations as soon as possible.