The Day CoinDash Lost $7 Million of Its ICO Funds

In early July, 2017 when the CoinDash team launched their ICO to herald the start of their project, little did they know that some unscrupulous persons were also busy scheming to phish them of their investors’ funds. The CoinDash ICO was abruptly shut down in its very early stages due to a hack on their fundraising site. The hacker(s) had replaced the official Ethereum address with their own and before a rectification of the situation could be effected, about $ 7 Million worth of ETH had already been siphoned.

The company was forced to speedily issue this statement;

“Contributors that sent ETH to the fraudulent Ethereum address, which was maliciously placed on our website, and sent ETH to the official address will receive their CDT Tokens accordingly.”

The crowdsale had to be terminated. This comes on the back of previous ICO hacks such as that of DAO which happened last year with over $50 Million worth of digital currencies stolen. But despite these incidences of ICO hackings, the popularity of crowdsales seems to be gaining unbridled momentum. It is therefore imperative that going forward, entities planning to launch ICOs should ensure that their systems security is up to par and thorough due diligence should be done on members of their teams – especially those handling their technical and development back-ends. This way we will witness little or no occurrences of such nature any longer.