SpankChain, an Ethereum-based entertainment platform for adults, was attacked by hackers and quickly made its way into the crypto news today.
The security breach led to losing more than $38,000. The hack allegedly took place on October 6 and was discovered only the day after.
Attackers who are still unknown managed to steal approximately 165 Ethereum or $38,000 from the payment channel smart contract. Also, the hackers managed to steal up to $4,000 worth of the platform’s internal token named BOOTY.
The platform stated that bringing back all the clients’ stolen assets is an immediate priority. SpankChain will repay about $9,400 worth of Ethereum and Booty tokens directly to all users who were affected.
The company stopped its Spank.Live cam service in order to protect users by preventing them to deposit via the payment channel smart contract. The website is expected to reboot and the process is expected to take about 3 days.
The hackers possibly created a malicious contract that mimics ERC20 token that can do the transfer function that can go back into the payment channel smart contract hundreds of times without stopping, stealing Ethereum each and every time.
Smart contracts are really difficult to hack but since they are a young technology, it is prone to go bugs which can be considered an open door for scammers and hackers.
The adult entertainment industry is really using the benefits of cryptocurrencies and blockchain technology because the possibilities the technology offers in the context of anonymity and privacy.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post