During the past four days, two EOS platforms have been hacked off more than a quarter of a million dollars which resembles 44,427.4302 EOS.
A few months ago, EOS was voted the number one cryptocurrency by the Chinese government crypto ratings. EOS has been praised for “outstanding technical advantages in transaction confirmation efficiency, network throughput, and transaction costs” of the protocol. However, the researchers warned that “due to its short online time, the stability of the network remains to be observed.”
The stability has been questioned more than once. A few weeks ago the EOS network proved vulnerable and allowed hackers to steal RAM resources from users. EOS is a decentralized operating system, hosting an ever-increasing number of decentralized apps (dApps). RAM is an essential resource within the system, as each dApp uses it to store data. The developers are trying to amend these issues regularly, but since the technology is new, it has some issues still.
Recent news states that EOS platforms suffered yet another attack and a minor attack occurred on September 9th when a DEOSgames user experienced what looked like a winning streak, with payments of around $1000 several times. The user would deposit 10 EOS and then win the jackpot 30 seconds later. The process can be viewed here, in the user’s account overview. According to a Tweet, DEOSgames have solved the problem and are up and running again.
“We are back up and running with EOS game for last 6+ hours. Yesterday, we got a malicious contract exploit our contract. It is a good stress test, and we got significant improvements on contract level. Keep doing what we do, remember we are still in beta”!
Another hack occurred on September 14th on another EOS betting platform. EOSBETCASINO released a statement on Reddit explaining that they have suffered a major loss because of a smart contract hack.
“On September 14th around 3:00 AM UTC, we experienced a hack and breach of our bankroll, resulting in a theft of 44,427.4302 EOS before our contracts were taken offline by the development team. The remaining 463,745 EOS in our EOSBETDICE11 and EOSBETCASINO contracts are safe, the vulnerability is patched, and we are back online. We want to be as transparent as possible in explaining this breach and addressing any concerns the community might have”.
The hacker exploited a flaw in the code and could, therefore, bypass a transfer function, which meant that their funds were not deposited to the smart contract. When they lost, they did not have to pay, but when they won, they won real money which they could cash out. The developers say that the platform is back online and that the rest of the funds are safe.
This kind of hacks shows that the blockchain and cryptocurrency market is still fairly new and are evolving every day. They have taken action to make sure that similar situations will not happen again.
“We take security very seriously at EOSBet. Our code was audited extensively by our development team and multiple independent 3rd parties. Despite this, there was still a vulnerability in our smart contract. The task moving forward is to strengthen our security practices, ensuring that a similar event does not occur in the future”.
Image Source: “Flickr”
Dennis Sahlström has been trading and investing since 2012 and has for the last two years been consistently profitable. He has been in the crypto- and blockchain space since the middle of 2017 and realized its potential for our world, not least how it is transforming the society we live in. He has now created an education platform, together with the wealth coach Marcus the Maria. They teach regular people how to invest and trade in the cryptocurrency market with proven strategies. If you want to learn more and feel like its time to get into this new asset class, download our free book and register to the next live training to get your future in cryptocurrencies started.