Crypto Exchange EtherDelta Suspends Trading After Alleged DNS Attack

Cryptocurrency exchange EtherDelta has suspended its service following an alleged denial-of-service (DNS) attack designed to empty users’ digital wallets.

EtherDelta Down

EtherDelta, a crypto exchange known for its large selection of altcoins, is recovering from an alleged cyber breach that occurred sometime Wednesday.

has reportedly suffered a major cyber security breach that has compromised client accounts. According to various reports, cyber criminals replaced the exchange’s website with a fake one designed to steal funds from users’ wallets.

The exchange took to Twitter on Wednesday to warn users it had “reason to believe” a malicious attack had occurred:

1/2 *IMPORTANT* we have reason to believe that there had been malicious attacks that temporarily gained access to @etherdelta DNS server. We are investigating this issue right now – in the meantime please *DONOT* use the current site.

2/2 *BE AWARE* The imposer’s app has no CHAT button on the navigation bar nor the offical Twitter Feed on the bottom right. It is also populated with a fake order book.”

The company has since issued a series of updates via Twitter. As of three hours ago, EtherDelta indicated it was “in the last step” to bring the service back online. At press time, the EtherDelta.com website was still down.

EtherDelta has grown in popularity in recent months, but remains one of the smaller exchanges by overall volume. The company turns over roughly $11 million per day in transactions, according to CoinMarketCap. That figure has since fallen to around $6 million following the attack. By volume alone, EtherDelta ranks among the top 90 exchanges worldwide. By comparison, popular exchanges Bitfinex, Bittrex and Bitthumb each process more than $3.5 billion in trades daily.

Cryptocurrency exchanges have been the target of several high profile breaches in recent years. Recently, South Korean exchange Youbit announced it was filing for bankruptcy following two cyber attacks in the span of a year. Meanwhile, startup company Tether said it lost $31 million to hackers last month.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi