Cyber Attack hits Britain’s latest digital currency Electroneum
Cyber Attack hits Britain’s cryptocurrency Electroneum after the company ICO manages to raise £30 million
A cyber-attack hit the initial coin offering (ICO) startup of U.K., Electroneum, restricting access to investor accounts. As a result, the investors were unable to perform any actions through their accounts for several days. The company managed to raise £30 million ($40 million) worth in cryptocurrency through the ICO.
Electroneum is the latest digital currency of an ICO in the U.K. markets. The ICO offers mining of the cryptocurrency through mobile devices. The company website and new mobile app was set to launch on Thursday (2nd November 2017). It was already worth millions of dollars in the ICO crowdfunding event.
The company set in Maidstone, got their website hit by a Distributed Denial of Service (DDoS) attack, delaying the launch of the mobile based mining app. In a DDoS attack, comprised network of computers, commonly referred to as “botnets” send non-stop requests to servers of a website. This will create lot of network traffic refraining any legitimate server requests reaching the website. This also allows hackers to get into the system.
About 140,000 people are holding Electroneum tokens. Electroneum will shut down all accounts from access till a secure network connection available without any further cyber-attacks.
Electroneum cryptocurrency created for the company ICO was bought by many investors. Many users bought the coins assuming it will also rise with the trend Bitcoin is keeping. One Bitcoin is currently worth more than $7,000.
Harry Redknapp, one of U.K.s well-known football managers started backing Electroneum recently. This action from Redknapp, who was excited on the startup even before the launch brought Electroneum to the attention of media.
Electroneum website and mobile app
According to Electroneum, any average person can start mining cryptocurrency using this technology. The technology is similar to software that generate tokens similar to bitcoin. But computers take more processing power for computations.
A message on the official website makes a statement apologizing the continued delay. The startup apologizes for the frustration caused and guarantee they are doing their best to take Electroneum to the next stage. This will be an evolution in company perspective.
U.K.’s Financial Conduct Authority points out that there is seldom investor protection when investing in an initial coin offering. The system lacking legal regulations is a sign for investors to prepare to invest knowing that there is a chance that everything could be lost.
Cyber criminals usually target new cryptocurrencies. Even though there are losses incurred in some startups, ICOs are still known to gain quick investments as funding for launching products.