Electroneum, a cryptocurrency startup that offers an app that uses smartphones for mining digital currency, has come under large attack after it raised $40 mln in its ICO.
The UK network company was hit by the massive attack - Distributed denial of service - which has blocked out investors from the access to their accounts. This has led to the company should to delay their full launch of their mobile mining app.
The DDoS attack, which has become the favorite form for cybercriminals looking to disrupt many of these high flying ICOs, involves a great quantitative of compromised computers which has a goal to access one site.
This Botnet, as it is known, floods the website’s servers and spams it with too much traffic for it to work. Legitimate traffic cannot get through, and it becomes far more susceptible to hacking attacks.
Electroneum has as such closed their accounts as they claim there are over 140,000 people who won tokens from the ICO. At this time it is trying to dislocate the attack and bring its network back online.
Backing the wrong decision.
Perhaps Electroneum went about putting all it wrong, as they have now become a soft purpose.
Maybe the hackers saw a possibility to take on an ICO that had been successful but had its weaknesses in terms of security. Indeed, some of the users have already asked questions. ‘Where is the security then?’
One user blocked out of his account complained on Facebook: "The question has to be asked... why didn't they do all this testing before the launch?"
Another said: "With $40 mln in the bank you should be able to hire and sort this quicker. This should all have been done before applying on the exchange.”
A statement on Electroneum website said: "We are very sorry for the continued delay and understand your disappointment. We are working as hard as it possible to complete the work and get everyone live so we can get on to the next level of the evolution of Electroneum."