Parity Multi Sig Hack: When Safe is Unsafe

Anne BecksBlockchain, Cryptocurrency, Ethereum, Fintech, scam Comments

Parity Multi-sig hack

The parity Multi-Sig Hack of July 2017 which was the second largest hack on the Ethereum network was recorded. The hacker exploited a vulnerability found on the Parity Multi-Sig Wallet version 1.5 to steal 153,037 ETH worth $30 Million. The uniqueness of the vulnerability lies with the ease of how a hacker can take possession of the account. Three major projects accounts were affected during the hack; Edgeless Casino, SwarmCity Project, and æternity blockchain. Even though a majority of the ETH was recovered due to the prompt action of the white hat group, there are still concerns about how safe different types of wallets are.

The hacked value would have been above $100 Million save for the exploit of the white hat group.

The parity Multi Sig Hack is quite interesting. As a customer, you walk into your bank and tell the bank to transfer the funds in another customers account. The bank doesn’t hesitate but happily carry out your request. This is the exact scenario that played out with the hack and one wonders how this could be so easy. The question on your mind right now should be the level of security of the wallets you are using. This is a multi-signature wallet which should feature an excellent level of security. However, reverse is the situation, leaving the funds of wallet users in the open for hackers to steal.

November  8 Parity Multi-Sig Hack

A replay of the July 19 2017 event occured again on November 8 2017, leaving many to ask how serious Parity Multi-Sig is with the funds of customers left in their care. The hacker claimed he was just researching and unintentionally “killed it”. This time around, the hacker didn’t try to steal the funds. Rather he destroyed it and that is even worst since it cannot be recovered. Let us give you the scenario of the November attack;

You see a bank vault wide open with little or no form of security. No hesitation, you just walked in and destroyed the money inside the vault.

In this new hack, $300 Million worth of Ethereum in 580 wallets belonging to 570 users are at stake. Right now, the funds are inaccessible and immovable by anyone including the Parity team. While debate is still buildin g on whether it is a bug or a hack, wallets users on other platform should prepare their mind as this form of incident is likely to happen to any wallet. No one is sure on the status of the locked funds right now, it is still a situation that is difficult to accept. The burden of solving and salvaging the situation solely lies in the hands of the Parity team.

The Poser

As a wallet user, you cannot be sure of the level of security of the wallet you are using even if you are techy with programming skills. Staying safe means being proactive and conversant with recent happenings in the crypto community. Adopt best security measures and hope your wallet is not vulnerable.