Hacker Returns 20,000 Ether to CoinDash in Another Installment, Recovering $26 Million in Stolen Coins

In what seems like a lesson taken from Aesop’s Fables, the hacker who had stolen 43,000 Ether from CoinDash’s initial coin offering (ICO) in July 2017, returned 20,000 Ether to the company with no strings attached.

This marks the return of the majority of the stolen funds since the same hacker had returned 10,000 Ether to CoinDash in September 2017.

With 33,000 Ether now back with CoinDash, the company has recovered around $26 million worth of Ether according to the cryptocurrency’s value at press time.

Announcing the update on its official blog, CoinDash mentioned that while the sent coins had been received by the company, the transaction will have no impact on its planned date of the product launch that remained scheduled for Tuesday, February 27 at time of the company’s post.

Alon Muroch, CEO of CoinDash, stated in the blog post that had been shared on Friday, February 23:

“Similar to the hack itself, the hacker’s actions will not prevent us from the realizing our vision [sic], CoinDash product launch will take place next week as originally intended.”

CoinDash aims to be the “YouTube” of the cryptocurrency world, not by sharing cute kitten videos, but by having industry experts connect with followers and new investors who are seeking advice to establish themselves within this new financial phenomenon that has taken the world by storm.

By having established investors and experts connect to people that are looking for tips and tutorials to make their way through the cryptocurrency world, CoinDash aims to serve as the primary platform that would serve as the launch pad for new members of the cryptocurrency community. To further facilitate its users, the platform will offer exchange integration with popular entities such as Binance and Bittrex, and will also offer wallet services.

Since the concept seemed promising, it was no wonder when it attracted significant investors during its July 2017 ICO. However, trouble arose when the company’s fundraising site was hacked, directing the invested funds to the hacker’s address, where anyone who was seemingly sending funds to the company was actually transferring them directly to the hacker.

The operations went on until CoinDash identified the issue, until which time, the hacker had safely made off with 43,000 Ether.

However, CoinDash compensated the affected investors that had fallen prey to the hacker’s scheme by offering them its CDT token as they would have received if CoinDash had obtained the direct payment.

All affected investors but those who transferred funds to the hacker’s address after the issue was identified benefited from the offer.

What caused the hacker to return the funds?

There is no apparent reason behind it, which is why it is something that at the surface seems like the hacker’s own decision to return the funds. It remains to be seen whether they would return the remaining 10,000 Ether at any point of time in the future, as there has been no confirmation on that front besides the previous two transactions made to return the partial funds.

However, it would be interesting to note that this is not the first time that a thief has publicly returned stolen possessions. The most relevant instance by region, since CoinDash is based in Israel, would be when thieves had returned antiquities by their own accord a little while ago, taking the authorities by surprise.

By | 2018-03-01T03:07:28+00:00 March 1st, 2018|News|0 Comments

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