OKEx and KuCoin Restrict Ethereum Classic Trading Following Network Attacks

Cryptocurrency brokerages are making decisions regarding Ethereum Classic (ETC) following recent 51% attacks on the network. The services of OKEx and KuCoin, for example, have restricted operations with the cryptoasset as a safeguard measure.

OKEx, a Chinese brokerage house with offices in Malta and operations in more than 100 countries, it suspended all ETC deposits and withdrawals on its platform after the first attack on July 31. In a statement released on Saturday, the company indicated that the decision protected its platform during the second attack on August 6. However, the company later admitted it had a loss of $ 5.6 million as a result of double spending.

The entity projection that the losses did not involve user assets, but that five accounts had to be suspended because they were used in the attack. On the 5.6 million dollars, OKEx said that it assumed the losses according to its “policy of protection of users”.

Following what happened, OKEx confirmed that it is considering removing the cryptocurrency from its exchange system. For now, the company announced that it will not restore ETC support “until the network is considered stable again”, something that will depend on the “work of the Ethereum Classic community.”

As for KuCoin, which opera from the Seychelles archipelago in the Indian Ocean, the decision was more radical. The brokerage house made a advertisement official in which he made it clear that It will no longer support ETC in applying for loans or trading. The company argued its decision by saying:

‘Due to the instability of the current ETC network and to ensure that users’ experience in margin trading is not adversely affected, KuCoin will remove ETC trading pairs from the margin market (…) There will be no impact on margin trading. spot market. »

KuCoin

For loans, the restriction came into effect on August 8, while for traders the cessation of operations with ETC ended on the 10th.

Details of the attacks on Ethereum Classic

Bitquery analytics firm confirmed that in the first attack, those involved doubled 807,260 FTE, which at that time represented $ 5.6 million, the same reported by OKEx. It was also reported that 17.5 bitcoin ($ 192,000) was spent to buy processing power and execute the action.

The attacker withdrew more than 800,000 FTE from OKEx to multiple external addresses. Source: OKEx

In the second attack he executed a double spend of 238,306 FTE or about $ 1.68 million, according to Bitquery. On this occasion, the attackers used the Bitfinex platform and another service that was not identified. In a first attempt, an attempt was made to double spend 465,444 FTE, approximately $ 3.3 million.

It should be mentioned that the network of Ethereum Classic has suffered similar attacks in the past, which has generated actions of this type among exchange houses or brokerage houses. In January last year, CriptoNoticias reported that exchanges Kraken, Coinbase and Poloniex stopped withdrawals and deposits for the same reasons. Binance, OKEx, and Bitfly increased the number of confirmations for ETC transactions.

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OKEx and KuCoin Restrict Ethereum Classic Trading Following Network Attacks

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