Cryptocurrency Derivatives Series: Brazil’s SEC CVM Orders Cryptocurrency-Exchange Binance To Stop Futures Trading
Digital Currency Revolution Series: Bakkt And Galaxy Digital Collaboration For Bitcoin Trading & Custody Services For Institutions
Digital Currency Revolution Series: Ethereum Bulls Halt At $250 But All Set To Take-Off, What Drives Further Upside Journey?
Digital Currency/Stablecoin/Tokenization Series: Crypto Garage Launches Yen-Pegged Stablecoin On ‘SETTLENET’
Digital Currency Revolution Series: Gemini Designates Ex-Goldman Sachs Executive As MD For APAC Region
Cryptocurrency Derivatives Series: Bitcoin Price Dynamics And Hedging Strategy Ahead of Options Expiry Season
Digital Currency Revolution Series: Bitcoin Bulls Drift In Sideways After Bullish Engulfing – Uphold Long Hedges
Digital Currency Revolution Series: Travala.com Partners With Expedia Group For Cryptocurrency-Based Travel Booking
Accidental bug activation in Parity wallet locks up user funds on Ethereum network
User funds running into millions of dollars on the Ethereum network have been reportedly frozen after a user triggered an issue in the Parity Wallet software.
A developer going by the name “devopps199” reported the security vulnerability on GitHub after “accidentally” activating it, CoinDesk reported.
In an official statement, Parity said that users with assets in a multi-sig wallet created in Parity Wallet that was deployed after 20th July were affected by this vulnerability, adding that “no funds can be moved out of the multi-sig wallets.” Earlier in July, another security bug resulted in the theft of nearly $30 million from Parity wallet.
“Following the fix for the original multi-sig issue that had been exploited on 19th of July (function visibility), a new version of the Parity Wallet library contract was deployed on 20th of July. However that code still contained another issue - it was possible to turn the Parity Wallet library contract into a regular multi-sig wallet and become an owner of it by calling the initWallet function. It would seem that issue was triggered accidentally 6th Nov 2017 02:33:47 PM +UTC and subsequently a user suicided the library-turned-into-wallet, wiping out the library code which in turn rendered all multi-sig contracts unusable since their logic (any state-modifying function) was inside the library,” Parity said.
According to reports, an estimated $280 million is now frozen.
However, in a tweet, Parity said that the total ETH circulating on social media is speculative, adding that it is analysing the situation and will release an update soon.
Update: To the best of our knowledge the funds are frozen & can't be moved anywhere. The total ETH circulating social media is speculative.— Parity Technologies (@ParityTech) November 7, 2017
"The security flaw really comes from the way the smart contract system is designed," bitcoin developer Peter Todd told International Business Times. "All these contracts can break because they are all dependent on each other."
"We have been blessed with a unique ability here to self-govern our own community and assets: The community has the option here to choose to 'unstick' these funds. How amazing is that? There's no need to appeal to government or regulators, but rather, it's a bug fix. Though action will be controversial to some, they are able to self-select themselves out,” Bob Summerwill, Sweetbridge, Principle Blockchain Developer, said.