51% attack ravages AurumCoin, $11,000 USD stolen

13 Nov, 2018
by Will Heasman
News
51% attack ravages AurumCoin, $11,000 USD stolen

AurumCoin, the gold-backed cryptocurrency, has allegedly been hit with a 515 attack which saw $15752 (AUD) ($11,332 USD) taken from a wallet on the crypto exchange, Cryptopia.

The AurumCoin team put out a message on their website seemingly trying to shift responsibility:

“Cryptopia exchange was hacked (51% attack), a total of 15,752.26 AU ( is missing from Cryptopia’s wallet. Aurum coin network is not the responsibility of anyone, same as Bitcoin network, it is open source distributed cryptocurrency. What’s worse is that cryptopia exchange do not admit it. This is not the way to solve this problem.” reads the statement.

So, if neither party admits fault, who is to blame?

A report by Finder shows that AurumCoin is inherently vulnerable to these kinds of attacks as it uses the SHA-256 mining algorithm, an algorithm which makes it which is notoriously easy to hack.

On the flipside, Cryptopia had a duty of care to AurumCoin and its users to ensure security protocols were in place to protect against situations like this; furthermore, their listing strategy is less than selective meaning that evidently poorly secured cryptocurrencies such as AurumCoin are able to slip through the net and allow the exchange to be compromised.

Security should be the top priority of both, exchanges, and cryptocurrencies because the real victims of these attacks are the consumers who put their trust and capital on the line.

Read more: 51% attack to be live streamed, showing just how easy fraud would be

Follow Chepicap now on Twitter, Telegram and Facebook!

Poll

Which party was at fault?

(6 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage