Claim: Crypto Exchange Lost $500,000 Due to AurumCoin 51% Attack

crypto exchange 51% attack

A little-known cryptocurrency called AurumCoin (AU) has claimed that it was hit by 51 percent attack, and crypto exchange Cryptopia, where the cryptocurrency is listed, lost 15,752.26 AU (approx. $550,000 at the time of writing this article). However, the cryptocurrency has shifted the blame on Cryptopia. On AurumCoin’s website, it has claimed that it is not responsible to anyone since it is an open-source distributed currency. Cryptopia, on the other hand, has not yet acknowledged any loss.

AurumCoin Claims to Have Suffered 51 Percent Attack

AurumCoin (AU) is purportedly a gold-backed cryptocurrency, where each token is pegged to the value of pure 24K gold. AurumCoin claims to back each AU with 0.75 grams of gold stored in secure vaults worldwide. It has been running its own blockchain since 2014, where AU is mineable (despite its supposed gold peg) with a hard cap of 300,000 coins.

Also, the price of AU has not seen any stability that would expected out of a truly gold-backed cryptocurrency. AurumCoin (AU) is currently priced at $35.01, up by 72 percent in the last 24 hours. In the past week alone, AU shot up by nearly 400 percent from $9.50 to its current price.

What is a 51 Percent attack?

crypto exchange double spend attack
Source: AurumCoin Website

A 51 percent attack is when a hacker is able to take control over a crypto network with more than 51 percent of its hash rate. It would give them the authority to control transactions, including stopping new transactions, reversing transactions and double spending coins. It has been demonstrated in the past how easy it is to perform a 51 percent attack on small cryptocurrencies.

With a market cap of just $10 million, AurumCoin was an easy target. The hacker sent 15,752.26 AU to Cryptopia and sold it for a different cryptocurrency. Once the transaction was done, the hacker allegedly used their superior hash power to reverse the transaction, as though it never happened. Based out of New Zealand, Cryptopia is a popular cryptocurrency exchange known for listing a variety of small-cap coins like these.

AurumCoin Shifts Blame On Cryptopia

Although Cryptopia has not acknowledged the attack, AurumCoin published the following statement on top of their website:

“Aurum coin (AU) network was hacked (51 percent attack), a total of 15,752.26 AU is missing from Cryptopia’s wallet (cryptopia.co.nz exchange). Aurum coin network is not the responsibility of anyone, same as bitcoin network, it is an open source distributed crypto currency. What’s worse is that cryptopia exchange do not admit it. This is not the way to solve this problem.”

It is not clear what AurumCoin expects Cryptopia to do. It has constantly insisted that Cryptopia was hacked. However, the fact is, AurumCoin lacked the hash rate to prevent a 51 percent attack which resulted in Cryptopia losing over half a million dollars. Recently, Bittrex delisted Bitcoin Gold after losing some funds due to a similar 51 percent attack.

Editor’s Note: CCN has reached out to Cryptopia for confirmation on whether it lost funds as the result of a double spend attack. According to the exchange’s website, no AU trades have been processed since early October, when the token’s markets were halted for an “infrastructure upgrade.”

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.

Who is Buying Bitcoin? Take the survey here and help us with our study.

Advertisement



About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 61,899.00
ethereum
Ethereum (ETH) $ 3,922.98
binance-coin
Binance Coin (BNB) $ 480.42
cardano
Cardano (ADA) $ 2.22
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 1.15
solana
Solana (SOL) $ 160.10
polkadot
Polkadot (DOT) $ 43.60
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.239193
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 61,899.00
ethereumEthereum (ETH)
$ 3,922.98
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 631.67
litecoinLitecoin (LTC)
$ 189.95
bitcoinBitcoin (BTC)
53.311,44
ethereumEthereum (ETH)
3.378,73
tetherTether (USDT)
0,861265
bitcoin-cashBitcoin Cash (BCH)
544,04
litecoinLitecoin (LTC)
163,60
bitcoinBitcoin (BTC)
45,186.58
ethereumEthereum (ETH)
2,863.80
tetherTether (USDT)
0.730005
bitcoin-cashBitcoin Cash (BCH)
461.12
litecoinLitecoin (LTC)
138.66

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021

Blockchain/Cryptocurrency Questions and Answers

ICo Presale
The Science Behind ICO Presales…
October 14, 2021
Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin61,748 0.50 % 4.44 % 14.33 %
Ethereum3,948.5 1.96 % 4.55 % 10.96 %
Binance Coin482.11 0.46 % 5.33 % 15.25 %
Cardano2.230 0.61 % 2.85 % 0.23 %
Tether0.9986 0.03 % 0.08 % 0.23 %
XRP1.150 1.06 % 3.21 % 8.64 %
Solana160.92 1.41 % 0.98 % 1.26 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Dogecoin0.2391 0.35 % 5.20 % 1.61 %

bitcoin
Bitcoin (BTC) $ 61,899.00
ethereum
Ethereum (ETH) $ 3,922.98
binance-coin
Binance Coin (BNB) $ 480.42
cardano
Cardano (ADA) $ 2.22
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 1.15
solana
Solana (SOL) $ 160.10
polkadot
Polkadot (DOT) $ 43.60
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.239193