$280M Worth of Ethereum Is Trapped Thanks to a Dumb Bug (2024)

On Monday, a small configuration mistake at an internet service provider and infrastructure company caused internet outages around the United States for a few hours, reverberating across other ISPs' networks as well. Cool way to start the week. From there, research indicated this week that the Kremlin-linked hacking group APT28 (also known as Fancy Bear) has been exploiting a newly exposed vulnerability in Microsoft Office to do topical phishing attacks referencing the recent ISIS bike path attack in New York City.

WIRED did deep dives into the ubiquitous and extremely clever Mimikatz password hacking tool, the crippling deluge of spam attacks journalists can receive in retaliation for controversial reporting, and the never ending question of whether Facebook is always listening to users' lives through their smartphone microphones.

The Pentagon has spent more than a year working with civilian hackers to find vulnerabilities in their systems—and the collaboration is actually making the Department of Defense more secure. Chrome is taking steps to block annoying, unwanted (and sometimes dangerous) webpage redirects. And that effective Netflix phishing scheme is making the rounds once again. It could be coming soon to an inbox near you! Take WIRED's advice and lock down your iOS 11 privacy and security settings right now. And while you're at it, make sure your cryptocurrency is safe, too.

And there's more. As always, we’ve rounded up all the news we didn’t break or cover in depth this week. Click on the headlines to read the full stories. And stay safe out there.

Almost $300 million-worth of the cryptocurrency ether is locked in digital wallets and unreachable because of an alleged mistake that triggered a bug in a popular wallet from Parity. The company released a security alert on Wednesday.

The flaw created a situation where Parity's multi-signature wallets (that require multiple sign offs on transactions) could be converted to individual wallets and taken over by a new single owner. A user, known on some sites as "devops199," triggered the bug this week (apparently by accident), gaining sole access to a number of formerly multi-signature wallets. From there the user eliminated their own access to the wallets—perhaps in a misguided attempt to undo what had happened. This is called killing or "suiciding" your wallet connection, because it means that no one will ever be able to access the wallet and whatever is in it will be stuck. Crucially, the software flaw that enabled this situation was in code meant to fix a different Parity bug that hackers used in July to steal $32 million-worth of ether. A possible solution would be a "hard fork" of Ethereum that would undo the situation and restore the trapped currency—kind of like a parallel universe in which the incident never occurred. The Ethereum community had chosen to make a hard fork once before after an attacker stole about $50 million-worth of currency last year.

WikiLeaks posted alleged CIA source code on Thursday, publishing details of a hacking tool called Hive that generates phony authentication certificates to communicate with malware installed on victim devices. As part of its Vault 7 release, Wikileaks already published documentation about Hive earlier this year. The organization has now selected the tool as the first in its “Vault 8” source code release series.

Wikileaks notes that one example of a forged Hive certificate pretended to come from the antivirus vendor Kaspersky Labs. CEO Eugene Kaspersky said in a statement, “We've investigated the Vault 8 report and confirm the certificates in our name are fake. Our customers, private keys and services are safe and unaffected.”

The Wikileaks release comes as Kaspersky Labs, a Russian company whose antivirus products are used around the world, is embroiled in extensive controversy over its potential participation in Kremlin espionage. Security experts also noted the potential dangers of the Vault 8 source code releases. While they said the Hive publication is unlikely to particularly aid malicious hackers, future releases might. For example, the alleged NSA Windows exploit known as Eternal Blue was leaked by hackers known as the Shadow Brokers in April and was subsequently used in damaging cyber attacks like the WannaCry ransomware outbreak.

Hackers compromised at least 195 websites owned by Donald Trump, his businesses, or his family in 2013 as part of a campaign that may have originated in Russia. Researchers say that users who visited the hijacked sites—which included domains like donaldtrump.org, donaldtrumprealty.com, and barrontrump.com—would have been redirected to malware distribution sites hosted on servers in St. Petersburg. Many of the URLs were not in active use. The attackers' redirect pages contained common malware like ransomware and password theft tools. The hacked sites were slowly reclaimed from the hackers and purged over the years, but the AP reports that the last of the still-compromised sites weren't fixed until last week when AP reporters asked the Trump Organization about the situation. It is unclear whether any of the sites succeeded in victimizing unsuspecting internet users, and the identity of the hackers is still unknown. They may or may not have been working for the Russian government or at all related to the attackers who infiltrated the DNC. Trump representatives deny that the websites were hacked.

The credit reporting bureau Equifax said on Thursday that it has racked up $87.5 million in expenses because of its giant data breach, disclosed in September. The company is also embroiled in dozens of state and federal investigations plus inquiries from Canada and the United Kingdom as a result of the massive blunder. And 240 lawsuits against the company are working toward class action status. On Thursday the company reported third-quarter profits of $96.3 million, a drop of 27 percent since the same quarter last year. The company says it still cannot estimate the final total of what the breach will cost.

$280M Worth of Ethereum Is Trapped Thanks to a Dumb Bug (2024)

FAQs

$280M Worth of Ethereum Is Trapped Thanks to a Dumb Bug? ›

Almost $300 million-worth of the cryptocurrency ether is locked in digital wallets and unreachable because of an alleged mistake that triggered a bug in a popular wallet from Parity. The company released a security alert on Wednesday.

Is Ethereum in trouble? ›

The SEC is investigating Ethereum after its 2022 software upgrade drastically altered the way the network orders transactions. The upgrade, called the Merge, allowed people to stake their Ether to earn interest, and that raised fresh questions of whether it's a security.

What happens if Ethereum is deemed a security? ›

If Ethereum is classed as a security, we'd see much stricter controls on how you can buy and sell Ethereum. One crypto attorney told CoinDesk it would be "devastating" for American investors. For example, centralized cryptocurrency exchanges are not registered with the SEC.

Is SEC investigating Ethereum? ›

“The U.S. Securities and Exchange Commission seeks to regulate ETH as a security, even though ETH bears none of the attributes of a security – and even though the SEC has previously told the world that ETH is not a security, and not within the SEC's statutory jurisdiction,” according to the lawsuit filed in a Texas ...

Can Ethereum ever shut down? ›

Downtime: the applications never shut down unexpectedly and can never be switched off. Censorship: Ethereum nodes (computers running the protocol) are distributed around the world eliminating censorship from a central authority. Fraud: the contract cannot be changed, hacked, or manipulated.

How much will 1 Ethereum be worth in 2030? ›

Ethereum (ETH) Price Prediction 2030

According to your price prediction input for Ethereum, the value of ETH may increase by +5% and reach $ 4,401.11 by 2030.

Is it safe to put money in Ethereum? ›

Before making any significant investment in Ether or other cryptocurrencies, consider speaking with a financial advisor first about the potential risks. Given the high risk and volatility in this market, make sure it's money you can afford to lose, even if you believe in Ethereum's potential.

Do I have to do anything with my Ethereum? ›

Do I need to do anything to have my ETH transitioned to the Proof Of Stake Chain? No, this happens automatically to your ETH custodied at Kraken. There will be no need to convert your existing ETH into anything else before, during or after The Merge.

Can Ethereum be refunded? ›

Ethereum Gas fees in general is non-refundable as they get paid to the validators for their role in Validating the transactions.

Who governs Ethereum? ›

The Ethereum platform was developed by a community of users and developers. These people collectively drive the development of the platform. Ethereum is not controlled by any one person, entity, or group. Ethereum exists solely through the work and effort of its community, who collectively operate the Ethereum network.

Who oversees Ethereum? ›

Ethereum is an open-source blockchain platform built by hundreds of thousands of developers from around the world. Since Ethereum is a decentralized network, no single entity controls or owns it.

Why is Ethereum not a security? ›

In 2018, former SEC Director of Corporate Finance William Hinman explicitly stated in a speech that while ether may have previously been a security, the network is now sufficiently decentralized to no longer meet the standards of the Howey Test, which determines which transactions qualify as an "investment contract" ...

What is the future of Ethereum? ›

By the year 2025, Ethereum is expected to reach the maximum level of $6,500, with a minimum of $4,500 and an average of $5,500. And by the year 2030, it is expected that it may go up to a maximum of $20,500." Given these factors, making an accurate Ethereum price prediction for 2040 is not easily determined.

Why is ETH dropping so much? ›

The decline in Ether's price can be attributed to surging liquidations in the broader crypto derivatives market, declining hopes for a spot Ethereum ETF approval in the United States, and Ether's bearish technical setup.

Is it risky to invest in Ethereum? ›

Bitcoin and Ether Performance

Both Bitcoin and Ether have been exceptional long-term investments, but both are prone to extreme price volatility. Buying either crypto requires a high risk tolerance.

Will Ethereum go high again? ›

But ethereum could also rally in the coming months if the Federal Reserve cuts interest rates sooner or more aggressively than expected. ETH prices are up 48% in 2024. That's roughly in line with bitcoin's year-to-date gain. As of late March, Ethereum is trading below its all-time high of $4,891 set in November 2021.

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