More than $50 million USD of Ethereum stolen


#1

Wandering around, I saw a thread on bitsharestalk about this:

>$50 USD Million worth of ETH stolen by DAO bug?
https://bitsharestalk.org/index.php/topic,22685.msg294881/topicseen.html#msg294881

Ethereum might have been a technology too early for its time. Which means, that if $50 million USD dollars can be easily stolen by a simple coding error, it is time to re-evaluate smart contracts.

Perhaps 4 years from now, maybe the system and language will be better understood. But in my personal opinion, it is not ready for heavy investment yet.

This is one of the things that makes Peercoin’s blockchain shine. We’ve had 4 years running with critics saying proof-of-stake can’t work. While there has been hiccups, we’re still running, and have historical proof of the success of the network to date.

As time continue to goes on, we’ve outlasted many other alts, and will continue to do so…


#2

The best that could ever happen for Ethereum would be a massive devaluation from it’s current hyped-up price. Its usefulness as an engine for smart contracts is directly opposed to its use as an engine for speculation. Whoever these investors are, they have really put the cart before the horse.

(I wouldn’t be surprised if this “bug” was even baked in intentionally
… to make scripting in Ether more affordable
…after the devs took their profit, of course!)

P.S. In case you miss the tongue-in-cheek: I don’t really think the Ethereum devs are corrupt.


#3

Message from the DAO hacker to community:

===== BEGIN SIGNED MESSAGE ===== To the DAO and the Ethereum community,

I have carefully examined the code of The DAO and decided to participate after finding the feature where splitting is rewarded with additional ether. I have made use of this feature and have rightfully claimed 3,641,694 ether, and would like to thank the DAO for this reward. It is my understanding that the DAO code contains this feature to promote decentralization and encourage the creation of “child DAOs”.

I am disappointed by those who are characterizing the use of this intentional feature as “theft”. I am making use of this explicitly coded feature as per the smart contract terms and my law firm has advised me that my action is fully compliant with United States criminal and tort law. For reference please review the terms of the DAO:

“The terms of The DAO Creation are set forth in the smart contract code existing on the Ethereum blockchain at 0xbb9bc244d798123fde783fcc1c72d3bb8c189413. Nothing in this explanation of terms or in any other document or communication may modify or add any additional obligations or guarantees beyond those set forth in The DAO’s code. Any and all explanatory terms or descriptions are merely offered for educational purposes and do not supercede or modify the express terms of The DAO’s code set forth on the blockchain; to the extent you believe there to be any conflict or discrepancy between the descriptions offered here and the functionality of The DAO’s code at 0xbb9bc244d798123fde783fcc1c72d3bb8c189413, The DAO’s code controls and sets forth all terms of The DAO Creation.”

A soft or hard fork would amount to seizure of my legitimate and rightful ether, claimed legally through the terms of a smart contract. Such fork would permanently and irrevocably ruin all confidence in not only Ethereum but also the in the field of smart contracts and blockchain technology. Many large Ethereum holders will dump their ether, and developers, researchers, and companies will leave Ethereum. Make no mistake: any fork, soft or hard, will further damage Ethereum and destroy its reputation and appeal.

I reserve all rights to take any and all legal action against any accomplices of illegitimate theft, freezing, or seizure of my legitimate ether, and am actively working with my law firm. Those accomplices will be receiving Cease and Desist notices in the mail shortly.

I hope this event becomes an valuable learning experience for the Ethereum community and wish you all the best of luck.

Yours truly,
“The Attacker”
===== END SIGNED MESSAGE =====

Message Hash (Keccak): 0xaf9e302a664122389d17ee0fa4394d0c24c33236143c1f26faed97ebbd017d0e
Signature: 0x5f91152a2382b4acfdbfe8ad3c6c8cde45f73f6147d39b072c81637fe81006061603908f692dc15a1b6ead217785cf5e07fb496708d129645f3370a28922136a32


#4

Turns out that letter is false.

We are all having fun anyway!


#5

The letter does drive home a point. Who will be the criminals here? Who will be sued? The ones who created The DAO, the ones trying to mitigate the “attack”, the “thief”… I mean… this is so far from over and it’s only going to get a whole lot more messy from here on.