CoinDash, a startup aiming to build a social trading platform for crypto-markets, has announced that it lost $7 million in a hacking attack during its token sale event.

The token sale started on July 17 at 13:00PM GMT and was scheduled to end on August 17th, 2017 or earlier should the $12 million hard cap be reached. The startup said that it had secured $6.4 million from early contributors and whitelist participants. In total, CoinDash raised $7.53 million before the hack took place, CoinDesk reported.

Token-as-a-Service (TaaS) announced its strategic investment in CoinDash on July 16, with its 500 ETH investment being the last of the allocated amount to strategic pre-TGE investors. Besides CoinDash, TaaS has made six investments, totaling 2500 ETH and 422 BTC include: Mysterium Network (500 ETH), Sphre Air (70 BTC), Bancor (352 BTC), TenX (1000 ETH), Dao.Casino (500 ETH), and Digital Developers Fund (300 ETH).

During the token sale event, a hacker placed a fraudulent Ethereum address on the CoinDash website and drained $7 million. The token sale has now been terminated. In its official statement, the company said:

“It is unfortunate for us to announce that we have suffered a hacking attack during our Token Sale event. During the attack $7 Million were stolen by a currently unknown perpetrator.

“CoinDash is responsible to all of its contributors and will send CDTs reflective of each contribution. Contributors that sent ETH to the fraudulent Ethereum address, which was maliciously placed on our website, and sent ETH to the CoinDash.io official address will receive their CDT tokens accordingly. Transactions sent to any fraudulent address after our website was shut down will not be compensated.”

CoinDash is now looking into the security breach and is asking investors who sent ETH to the hacker address to help it in its investigation by submitting the information to the link provided:

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