CoinDash, a Blockchain-based trading platform, informs that its ICO was abruptly halted as $7 million out of $12 million raised was stolen by hackers. Investors were to pay in Ethereum to the token sale’s smart contact address that was hacked and changed to a fraudulent address.
“It is unfortunate for us to announce that we have suffered a hacking attack during our Token Sale event. During the attack, $7 mln were stolen by a currently unknown perpetrator. The CoinDash Token Sale secured $6.4 mln from our early contributors and whitelist participants and we are grateful for your support and contribution”, CoinDash team explains in the official statement.
The hacker attack is still under investigation. CoinDash has stopped the coin sale and informed investors to avoid sending Ethereum to the website.
“This was a damaging event to both our contributors and our company but it is surely not the end of our project,” the company says.
CoinDash underlines that it bears full responsibility for the attack and ensured that all investors who sent funds to the CoinDash address before the ICO or Token Sale event ended will be credited with its native token CDT. Now, the primary task for the team is to recover and provide CDTs to the affected investors.
“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,” the team says.
CoinDash unveiled a form that affected investors should fill in order to solve the problem as quick as possible.
If you sent ETH to the hacker address, please fill this form.https://t.co/XCD8FngyJt
— CoinDash.io (@coindashio) July 17, 2017
Some investors criticize CoinDash for not publishing their crowdsale smart contract in advance. The communication between some investor called MJ Dillon and CoinDash went public.
“Has anyone mentioned how bad an idea it is that you have a whitelist of people you’ll be emailing a contract address to with a ‘send money now!’ message before the address is public? Isn’t that just asking someone to try to hijack that process?”
The CoinDash responded:
“MJ Dillon, if you don’t know how it will be done why are you making false assumptions then?”
CoinDash was planning its ICO to last 28 days and reach $12 million. Indeed, it took not so long to raise $12 million and the campaign would have been completed successfully if $7 million hadn’t been stolen.