The event also resulted in Coinbase pausing the alleged manipulated funds on the ETC blockchain with the Brian Armstrong-led company stating that eight additional reorganizations were detected, amounting to a whopping $460,000.
In an official blog post, Coinbase stated:
“We observed repeated deep reorganizations of the Ethereum Classic blockchain, most of which contained double spends. The total value of the double spends that we have observed thus far is 88,500 ETC (~$460,000).”
A detailed charting by Coinbase reveals that the double spending occurred in 8 different shifts, starting with a value of 4,000 ETC and ending with a value of 5,000 ETC. The event has forced Coinbase to evaluate the safety of transactions as well as monitor all peripheral activities. The company said:
“As part of that commitment, we monitor blockchains for activity that could be harmful to our customers and take prompt action to safeguard funds. We want to emphasize to customers that Coinbase strives to be the most trusted and safest place to buy, sell, or store cryptocurrency.”
The officials at Ethereum Classic have rebutted Coinbase’s statements by saying that the company had not approached ETC regarding the attack is “still very much an ongoing process”. Ethereum Classic further added that they had an inkling as to where the hash rate came from. They had tweeted:
“ASIC manufacturer Linzhi confirmed testing of new 1,400/Mh ethash machines #projectLavaSnow
– Most likely selfish mining (Not 51% attack)
– Double spends not detected (Miner dumped blocks)”
The cryptocurrency company has made attempts to calm the rocky waters by not hiding or downplaying the recent events. They have admitted that both the alleged Coinbase double spending report and the testing of ASICS can both turn out to be true without giving further comments.
The occurrence on the ETC network has created a butterfly effect in the cryptocurrency community, with several exchanges temporarily shutting down ETC transactions or beefing up their security protocols. Bitfly, a popular exchange tweeted:
“Because of the currently ongoing potential 51% attack on #ETC we have temporarily increased block confirmations on our ETC mining pool. We will notify you once the network has stabilized again.”
The company also said:
“We can confirm that there was a successful 51% attack on the Ethereum Classic (#ETC) network with multiple 100+ block reorganization. We recommend all services to closely monitored the chain and significantly increase required confirmations.”
Ethereum Classic has not come out looking good after this occurrence, becoming one of the biggest losers on the charts and the prices sliding even at press time.