Attack on AurumCoin from cryptopia stolen more than $ 500 000

[boss.afro]

The developers of cryptocurrency AurumCoin (AU) said the attack 51% on its network, which resulted in the unknown user brought 15 752,26 coins ($571 000 at the time of publication) from the crypto currency exchange Cryptopia.

The founders of AurumCoin at the same time claim that they are not responsible for what happened, because the token has an open code, and transferred the blame to the employees of the exchange.

"Coin network is Aurum (AU) has been compromised (attack 51%). Just Cryptopia with purse was stolen 15 752,26 AU. The Aurum network, just like the bitcoin network, does not bear any responsibility, as it is a distributed open-source cryptocurrency. Worst of all, Cryptopia refuses to admit it. This is not how problems are solved."

On Twitter, the project team writes that it does not blame Cryptopia, but the fact that the coins were stolen.

It is assumed that the hacker sent about 16 000 AU to an account belonging to The cryptopia exchange, and exchanged them for another cryptocurrency. After the transaction, the attacker used the computing power at his disposal and canceled the transaction.

According to the founders of the project, each AU token is provided with 1 Troy ounce of 999 gold, which is in secret vaults around the world. The token is mined, and the issue is limited to 300 thousand coins.

It is curious that, despite the incident, the price of the crypto currency not only did not fall, but also increased in recent days with trading volumes not exceeding $4 000.

Note that over the last month the price of AurumCoin has increased 5 times — from $7 to $36.

During the same time, the price per Troy ounce of gold ranged from $1,200 to $1,240, which raises the question of the reasons for the rapid growth of the AU price.

source https://forklog.com/vsledstvie-ataki-51-na-aurumcoin-s-birzhi-cryptopia-pohishheno-bolee-500-000/

[rumexx]

This argument between the developers and exchange is not helping anyone. Money has been lost by the customers who invested during the ICO period. In my own opinion, cryptopia is liable for this loss because it happens in their platform which should have been secured form all sorts of hackers attack. This is their primary responsibility for ensuring the availability and safety of funds.

[wuvdoll]

If your coin is small enough to get a 51% from someone with a little bit of knowledge or at least enough money to cover your 51% from just buying, than you are not a proper coin at all. They may claim the trouble is with cryptopia which it very well might be but they are not without fault as well, if your coin is small enough to not get attention to make it very expensive for %51 attack than you need to find another way to protect the coins.

Right now, for me aurumcoin worth zero, not even 1 satoshi, someone can offer me 100 thousand dollar worth of aurumcoin for 1 satoshi and I still wouldn't hold it at all, I would just sell it for whatever I can. This is a coin that is tied to the price of gold whereas the price of gold is same but the coin itself got higher. They are legit looking like fools or scammers.

[xtraelv]

Yes - Aurumcoin was attacked but the article is not correct.

1) Cryptopia published the 51% attack before Aurumcoin disclosed it. First they denied it, then they blamed Cryptopia, now they say they don't blame Cryptopia. (See their archived sites in the quoted part below).

2) The exploit took place entirely on the Aurumcoin blockchain. Balances are stored on the blockchain. There is no evidence that at any stage the Cryptopia private keys or servers compromised. (Such transactions would be visible on the blockchain). If there are funds missing then the blockchain balance has been altered by a coin network based exploit (chain re-org). This can easily be shown by consecutively mined blocks by the same address and the number of orphaned blocks. Nodes will also have records of the transactions that took place on the orphaned blocks.

3) Media articles have been instigated by Aurumcoin while Cryptopia attempted to resolve it with their coin developers.

4) If the amounts are correct (15K coins) - they were trading below $4 at the time that Aurumcoin was 51% attacked.

5) It is not known if the attack affected other exchanges and whether they have coins in their exchange wallets.

6) Aurumcoin is unable to secure their coin network against further attacks and is not backed by any gold - despite claims in media articles.

Disclosure / disclaimer:  I am not Cryptopia staff. I am a volunteer moderator for their trollbox and discord channel and user of their services. Cryptopia does not have staff that answer questions on Bitcointalk as it is not recognized as an official communications channel. I am not authorised to provide any statements on behalf of Cryptopia. This is personal opinion only. The actions of the Aurumcoin developers caused financial losses to me.

It has already been covered extensively in other threads:

cant already told you that this coin has flaws which arent easy to fix, thats back before rossen took an exit

What flaws? Same code as bitcoin, are you aucoin?

Not true. Bitcoin had a release 12 days ago. With a 209 releases since creation.
https://github.com/bitcoin/bitcoin

When was the last Aurumcoin release ?
https://github.com/aurumcoin-au/Aurumcoin-AU


Bitcoin has 33,633 PH/s protecting against a 51% attack.
Bitcoin has numerous sites that monitor its coin network health for potential exploits.
Bitcoin has identifiable coin developers that warn the coin community of potential threats.
Bitcoin is decentralized.

https://www.coindesk.com/12-ways-measure-bitcoin-networks-health

Orphaned blocks monitor:
https://www.blockchain.com/charts/n-orphaned-blocks?
https://www.blockchain.com/btc/orphaned-blocks

https://reqrypt.org/txmon.html

Why old code carries risks:
https://www.coindesk.com/the-latest-bitcoin-bug-was-so-bad-developers-kept-its-full-details-a-secret


Lie #1
AurumCoin – The first distributed open source cryptocurrency to be backed by gold




Proof it is a lie:



Aurumcoin has NO GOLD.

It has no gold so it is not the first.
It cannot become the first because there are other crypto currencies already backed by gold.

https://www.ft.com/content/6d51117e-5806-11e3-a2ed-00144feabdc0
e-gold was the first electronic currency backed by actual gold.

Perth Mint is currently a reputable company offering a gold backed crypto.
https://www.perthmint.com/media-release-InfiniGold-and-TPM-digital-gold-cert.aspx
Perth mint has actual gold backed Crypto https://www.infinigold.com/

Someone has to be responsible for the gold. Perth Mint has been a trusted company for many years.

https://onegram.org
Onegram is a decentralized crypto backed by gold.

Lie #2
Cryptopia got hacked


https://archive.fo/iNLQa
Proof it is a lie:
Aurumcoin published on 10 November that “Cryptopia got hacked”.
This is untrue. None of the exploits used in the 51% attack touched the Cryptopia servers.

Aurumcoin got 51% attacked. In this attack a single attacker took over the blockchain and “overruled” the previously mined blocks by the honest miners and replaced it with “privately mined blocks that were mined in secret by the attacker”. This reversed transactions that had been previously confirmed by the Aurumcoin network. The exploit occurred entirly on the Aurumcoin network.

Balance of funds are held on the distributed ledger (Blockchain). A hardware wallet only holds the public and private keys. The private keys remain secure.
This means that if funds are reversed they are removed from the distributed ledger (Aurumcoin blockchain) and become no longer available. None of this is under the control of the wallet owner. This process occurs entirely on the Aurumcoin network.


Lie #3
Cryptopia do not admit a 51% attack


https://archive.fo/cOcYF  

Proof it is a lie:

9 November Cryptopia publishes the 51% attack. Prior to this Cryptopia sent a report on the 51% attack to the Aurumcoin developers.

https://archive.fo/iNLQa  10 November Aurumcoin Claims Cryptopia was hacked.
https://archive.fo/cOcYF  11 November Aurumcoin claims Cryptopia do not admit a 51% attack

Lie #4
Aurum coin was worth $40 before Cryptopia paused the market.



Proof it is a lie:

https://coinmarketcap.com/currencies/aurumcoin/

It was worth less than $4

https://www.coinexchange.io/news/post/64/