Ethereum Developers Cost Yunbi Exchange 40,000 ETC Due To Replay Attack

By July 28, 2016Bitcoin Business
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TheMerkle_Yunbi Ethereum Vulnerability

The release of Ethereum Classic is throwing a monkey wrench into the plans of many cryptocurrency exchanges. Yunbi, one of China’s largest trading platforms for Ethereum, was forced to postpone the addition of ETC by at last 24 hours. They do not want to make the same mistakes as Coinbase and GDAX by letting replay attacks wreak havoc on the Ethereum Classic price.

Yunbi Takes Precautions To Avoid Replay Attacks

Similar to what Kraken did yesterday, the Chinese Yunbi exchange is ensuring they have their ducks in a row before listing Ethereum Classic. There would be no point in adding this trading pair only to see trading volume emerge to down the coins at bottom prices due to a bug in the code that could have easily been prevented.

Users who deposited Ethereum on the Yunbi exchange before the DAO bailout hard fork may have lost ETC in the process. Yunbi made a mention of 40,000 Ethereum Classic coins being lost, thanks to the replay attack, which was not addressed by the Ethereum developers. However, the exchange platform is not to blame for this problem.

What is even more worrisome is how this vulnerability was known to the Ethereum developers before making the hard fork go into effect. There was ample time to correct this code, but they rather assumed there would be no second blockchain opposing the hard fork decision. This laid-back approach will not do the credibility of Ethereum as a project any good, although the die-hard community will expunge the record at every chance they get.

Interestingly enough, the Ethereum and Ethereum Classic prices are showing signs of strong support. This surprised a lot of investors, as some people assumed one of these blockchains would have to go. That may still happen in the future, although they can co-exist for the time being. Dapp developers may want to thoroughly consider if they prefer a censored or censorship-resistant blockchain.

Regardless of all of that, the ETC trading pair on Yunbi went live a few minutes ago. Users can trade Ethereum Classic against the Chinese Yuan, giving ETC another fiat payment gateway next to EUR and USD. It will be interesting to see how much trading volume this pair can generate over the coming months.

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Similar to what Kraken did yesterday, the Chinese Yunbi exchange is ensuring they have their ducks in a row before listing Ethereum Classic. There would be no point in adding this trading pair only to see trading volume emerge to down the coins at bottom prices due to a bug in the code that could have easily been prevented.

Users who deposited Ethereum on the Yunbi exchange before the DAO bailout hard fork may have lost ETC in the process. Yunbi made a mention of 40,000 Ethereum Classic coins being lost, thanks to the replay attack, which was not addressed by the Ethereum developers. However, the exchange platform is not to blame for this problem.

What is even more worrisome is how this vulnerability was known to the Ethereum developers before making the hard fork go into effect. There was ample time to correct this code, but they rather assumed there would be no second blockchain opposing the hard fork decision. This laid-back approach will not do the credibility of Ethereum as a project any good, although the die-hard community will expunge the record at every chance they get.

Interestingly enough, the Ethereum and Ethereum Classic prices are showing signs of strong support. This surprised a lot of investors, as some people assumed one of these blockchains would have to go. That may still happen in the future, although they can […]

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