This was an intentional attack on PowerCoin and on Cryptsy. The reason you do not see the attack on the current blockchain, is because a checkpoint was released after the attack occurred which corrected the blockchain.
The 3 BigVern Questions - What Happened? What Did We Do In Response? How Do We Prevent This From Happening Again?
What Happened?
- The attacker captured 51% or more of the network hash and manipulated it in a manner in which they were able to send Cryptsy several large deposits of PWC after confirming that Cryptsy was now on their chain.
What Did We Do In Response?
- We became aware of reports of the possible attack, I messaged NWO. He released a client update with new checkpoints, which we updated to right away.
- After updating, those transactions in the blockchain became unconfirmed, which reduced the Cryptsy wallet balance.
- The attack then withdrew their Cryptsy balance back to their wallet, which they had also apparently upgraded with the new checkpoints.
How Do We Prevent This From Happening Again?
I have since implemented measures on Cryptsy to immediately cancel any deposits which go from being confirmed in the blockchain to unconfirmed.
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Why Can't We Just Start Using This Coin Again?
- Because there is a holder of this coin who can dump these at any time and any price for him would be profit. Therefore, this coin no longer has real work value.
Can't I Just Withdraw My Balance From Cryptsy?
- Crytpsy does not have the PWC available after the attack to fulfill this.
So what is the final resolution for PWC and Cryptsy?
PWC will not be actively traded on Cryptsy. However, I will be opening limited trading for you to trade your PWC balance into BTC. Deposits of PWC to/from Cryptsy will no longer be allowed. The last trades happening on Cryptsy for PWC were around 0.00000400 BTC each.
I am offering to buy your PWC balance on Cryptsy at the price of 0.00000400 BTC each. This offer will open in the next 24-48 hours and remain open for about 2 weeks. This market will only be accessible for users who have PWC balance. No buy orders other than from Cryptsy will be allowed.
After this final exchange of PWC, Cryptsy will destroy all PWC in it's possession and the client software and wallet will be deleted.
It is at your own discretion if you want to continue to mine Powercoin and trade/hold it between yourselves, but I certain do not recommend it.
Can this happen again on Cryptsy? It's very unlikely that it will be as easy for an attacker to repeat this particular attack again on Cryptsy after we have added the reversal process. HOWEVER, there are new exchanges emerging that may be targeted.
BigVern
+1 Well put
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