Israeli Blockchain technology startup announced that an unknown hacker had hacked its website and trick investors into paying $7 million worth of Ethereum into the hackers account.
The Israeli Blockchain technology startup, CoinDash launched an Initial Coin Offering (ICO) for the trading of Ether in which investors could pay and send Ether to token sale's smart contact addresses. Not long after the launch, a hacker hijacked the website and then changed the Ethereum address while the investors sent about 43438.455 into the wrong address belonging to the hacker. In less than 3 minutes of the hack, the hacker had stolen $7 million from the investors.
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Although CoinDash warned within a few minutes of the launch that its website had been hacked, telling investors not to send Ethereum to the address on the site, it was already late because the hacker had trick most of the investors.
"It is unfortunate for us to announce that we have suffered a hacking attack during out token sale event," a statement from CoinDash read.
"During the attack, $7 Million was stolen by a currently unknown perpetrator. The CoinDash Token Sale secured $6.4 Million from our early contributors and whitelist participants, and we are grateful for your support and contributions."
The company said that they will refund all those that send Ethereum to the fraudulent Ethereum address when the compromised site (CoinDash.io) was running but wont compensate those who sent funds to the fraudulent address when the site was shutdown.