Ethereum Smart Contract Error Costs Cryptocurrency Exchange $14 Million

[bbc.reporter]

If you hold bitcoins or ETH in the QuadrigaCX exchange, then it may be a good time to withdraw everything you have there. While the exchange is claiming that their solvency is not affected by the trapped ETH they have in a contract worth 67,317.25 ETH or 14M dollars, but to be sure it is better to withdraw all your coins.



A Canadian digital currency exchange is out as much as $14m worth of the cryptocurrency ether.

According to social media posts and a subsequent statement from Vancouver-based QuadrigaCX, the issue had to do with a previously used "splitter contract" which was utilized to separate incoming ethers and classic ethers (another cryptocurrency that arose from a blockchain split last year).

Yet a recent ethereum client software update, according to QuadrigaCX, led to an issue with how the smart contract functioned.

Read the article in full http://www.coindesk.com/ethereum-smart-contract-exchange-14-million/

If someone could post more information, that would be nice. Thank you.

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[stealth.money]

Too bad, they should have known Ethereum is a bugs riddle platform and shouldn't have offer on their exchange.
Too many bad things waiting to happen, this splitting bug will never go away.

[Herbert2020]

Too bad, they should have known Ethereum is a bugs riddle platform and shouldn't have offer on their exchange.
Too many bad things waiting to happen, this splitting bug will never go away.

it is the greed that will always cause loss of money, the more greedy people are the more they lose.
these exchanges resisted not adding ethereum for a long time but they saw the huge volume on poloniex and started doubting their first good judgement and despite all the signs they added it, and it is not just this exchange, there are a lot of them that did this recently because of the recent pump!

i say they deserve it.

[mining1]

These trolls blaming eth for exchange's fault is sad. Sour grapes at it's finest. Their code didn't use the prefix needed for eth "0x" and that was the problem. And they were lucky because it wasn't mandatory untill now, but now it is with one of the latest geth updates.

So basically the eth was redirected through a split contract and then to a hot wallet. Because the code of the split contract didn't prefix the hex string with 0x, it got stuck there. What's worse is that, whoever made that loose code for the contract didn't even bother to read geth's updates to see that now the 0x is enforced. And they only noticed it after a few days, 0 testing. I assume they don't have enough very qualified personnel.

However, they most likely will be able to unlock the eth, there's an EIP in work that will help with this kind of situations.

[Charloz24]

Oh that is not good news. One year ago I was using this exchange to cash out my mining profit (ETH) and it worked very well. Liked the option to send fund to a credit card. Oh well I was not using it for now (I accumulate) but I will have to find another good exchange in Canada, is there others?

[TheRedDevil]

Hard to believe that exchange had 67,317.25 ETH.

Coinmarketcap: https://coinmarketcap.com/exchanges/quadrigacx/

[BitcoinHodler]

Hard to believe that exchange had 67,317.25 ETH.

Coinmarketcap: https://coinmarketcap.com/exchanges/quadrigacx/

that link is only showing the 24 hour volume not the whole history and i am sure when an exchange like this loses such a huge amount because of such a big bug a lot of smart traders leave the exchange for a while until they are sure if their solvency!

also the 24 hour volume is still pretty high at 2.76 million dollar considering that place only has 2 markets! and FYI 67K eth has been around one tenth of their current daily volume not so long ago!

[bbc.reporter]

There are now a lot of people trolling /r/ethereum making silly arguments that Vitalik and the Ethereum foundation should hardfork again to save the exchange. But then that will have you thinking, what if a project like Gnosis or Augur have gotten millions of their funds in ETH trapped or stolen?