More than 150,000 ether tokens, a digital currency similar to bitcoin, worth around $30 million were stolen by cybercriminals on Wednesday.
Around 153,000 tokens were taken by hackers, according to data from Etherscan. 44,055 tokens were stolen from commerce platform Swarm City. The theft was noticed at 12:30 p.m. ET on Wednesday, according to Swarm City communications officer Matthew Carano. The stolen tokens are worth around $32.6 million at today’s price for ether.
“We alerted the Ethereum Foundation and multiple developer groups immediately. Together, we were able to determine that malicious actors had exploited a flaw in the Parity Multisig code, which allowed a known party to steal over 153,000 ether from several projects including Edgeless Casino, Aeternity, and Swarm City,” Carano said in a blog post.
Aeternity confirmed in a blog post that 82,000 ether tokens had been stolen.
Once the hack came to light, ether’s price fell from around $235 to $196, according to Coindesk data. The price has since recovered slightly to $213.
How was the currency hacked?
A critical security alert was later released by Parity, a software developer which produces a web browser allowing users to interact with the Ethereum blockchain network and buy and sell cryptocurrencies including ether.
Parity produces a digital wallet for users to keep their funds. These wallets can use multisignature technology, which is intended to add security to digital currency exchanges by requiring another user to sign a transaction before it is added to the blockchain.
However, a vulnerability in the multisignature wallet’s code was exploited by hackers.