Since initial coin offering (ICOs) exploded in popularity in 2017, there have been a number of high-profile scams and hacks that have taken place.
As it is an industry that has been largely unregulated with very little oversight along with large sums of money flooding into the sector, it has attracted a lot of unscrupulous individuals. These people try to take advantage of people in any way they can, whether it is through phishing attacks, hacking exchanges, and wallets or running fraudulent ICOs.
This is why in some mainstream circles ICOs are seen as not being an attractive form of investment due to these risks, and it has caused a lot of governments to warn investors to avoid contributing fund to these token sales and with some countries such as China even banning ICOs from taking place on their shores.
Background on CoinDash
CoinDash is a company that specializes in the portfolio management of crypto. They are launching their platform in February 2018, but they have come a long way since holding their own ICO back in July 2018.
The company that is based in Israel was the victim of an attack on their ICO that jeopardized their entire project. It was in July 2018 that the wallet address for the offering was changed by a hacker to one that was owned by this individual.
All funds that were being sent through the token sale website were going directly into the wallet of the hacker instead of the company, which indicated that both the investors and CoinDash were negatively affected by this in a significant manner.
In total, there was millions of dollars’ worth of ethereum stolen. At that point in time, the estimates for the dollar sum that was taken was in the range of $7 million, and this led to the company promising investors that their funds would be granted to them, just through the CoinDash token and not through ether that they invested with.
A lot of ICOs that have been scammed have not been able to give any form of compensation to their investors, so this was definitely some form of consolation for those who had their funds stolen.
Hacker Returns Funds
Soon after the ether had been stolen, the price of the cryptocurrency began to rise rapidly, and in September the believed attacker is said to have returned 10,000 ETH to CoinDash. In February 2018 the company announced that another 20,000 ETH was returned to them by the supposed hacker.
The transactions in question both can be seen through the public wallet of CoinDash, and they are clearly linked to one of the wallet addresses used by the hacker. Using today’s prices, these funds that have been returned are worth around $17 million.
Thankfully, the hack did not stop the company from being able to develop their platform, and they are now set to launch it. They are of course delighted that these funds have been returned in what could be a case of the hacker having a guilty conscience.
There are ulterior theories about what happened, especially with the timing of the return of funds and the lack of demands made by the supposed hacker.