DAO hacked: $60 million in Ether stolen due to code vulnerability

Rage Review : There is new progress in the DAO vulnerability issue. It is reported that the hacker attack led to a large-scale sell-off, 3.6 million ethers were lost, and the price of ether plummeted. According to the current price, the total amount of lost ethers exceeds 60 million US dollars. The founder of Ethereum has stopped trading in ether and DAO tokens. The relevant funds are temporarily frozen in the "DAO subsystem" until July 14. Slock.it, the DAO source code provider, has uploaded the vulnerability fix to GitHub.

Translation: Annie_Xu

The DAO, a distributed autonomous organization that raised $150 million worth of ether, was reportedly hacked, leading to a massive sell-off.

The DAO, a managementless organization consisting of a series of Ethereum smart contracts, lost 3.6 million ether; after a stock swap and reorganization, it was stored separately in a "child DAO".

The Ethereum market plummeted as soon as the news came out, and the trading price on the cryptocurrency exchange Poloniex fell below $13. Currently, the trading price of each Ethereum is about $17.5. Based on this price, the total value of the lost currency exceeds $60 million.

Reddit and other social media first began reporting the news on June 17, with Ethereum founder Vitalik Buterin halting trading of Ether and DAO tokens.

The DAO was formally established in May using open source code written by Slock.it, a German startup based on Ethereum, with the goal of serving as venture capital to invest in Ethereum projects.

In the "project creation" phase, voting rights were obtained by purchasing DAO tokens with ether, and finally $162 million in ether was raised. The DAO code added a repair plug-in to form a "DAO subsystem", and DAO members could carry out various stock swaps and reorganizations.

Earlier this week, Bitcoin Foundation founder Peter Vessenes wrote a blog post about a so-called "recursive call" attack that would empty some smart contract accounts. Slock.it provided a fix and uploaded it to GitHub.

Peter Vessenes

All the ether that has been transferred to the DAO subsystem has been frozen. Gustav Simonsson, a member of the Ethereum Foundation who oversees the Ethereum codebase, wrote in a blog post that the funds in question are currently frozen in the DAO subsystem and will not be used before July 14.

Buterin announced that the next fork of the Ethereum blockchain would not roll back or reverse any transactions, but would prevent the DAO from losing further Ether through a re-acquisition mechanism.