Ethereum-based adult entertainment platform SpankChain has suffered a smart contract security breach that led to loss of around $38,000, the firm reported on its Medium page Oct. 9.The hack, which purportedly took place Oct. 6, was detected by SpankChain a day after, and was announced today in a post entitled "We Got Spanked: What We Know So Far.".
Anonymous attackers managed to steal 165.38 Ethereum or around $38,000 from the platform's payment channel smart contract.
The security breach caused the immobilization of $4,000 worth of the SpankChain's internal token called BOOTY.While most of lost or immobilized funds belong to SpankChain itself, the platform claimed that client reimbursements are of "Immediate priority." The company will shortly repay $9,300 worth of Ethereum and Booty coins directly to users' SpankPay accounts via Ethereum airdrop.
The SpankChain team has subsequently halted its camservice Spank.
Live in order to prevent users from depositing via the payment channel smart contract.
The website reboot is expected to take around two to three days in order to reset the payment channel smart contract, carry out airdrop reimbursements, reset native token distribution, and eliminate the security weakness.
The hacker reportedly created a malicious contract mimicking an ERC20 token, with a "Transfer" function calling back into the payment channel smart contract multiple times in a loop, extracting Ethereum each time.
A smart contract is a protocol that enables the specific behavior of a contract by applying the terms of the agreement into the code, eliminating the need for a third party intermediary.
While smart contracts are reportedly "Extremely difficult to hack," they are still a young technology, and can be prone to bugs, which may in turn be exploited by scammers.
The adult entertainment industry is increasingly taking advantage of cryptocurrencies and blockchain technology, mostly driven by the technology's inherent anonymity, as well as a number of other benefits.
Hackers Breach Smart Contract on Ethereum-Based Adult Entertainment Platform SpankChain
Publié le Oct 10, 2018
by Cointele | Publié le Coinage
Coinage
Mentionné dans cet article
Nouvelles récentes
Voir tout
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.