Ethereum Classic’s lead development team, ETC Labs, is investigating the recent 51% hack after hiring Kobre & Kim, an investigations firm to lead its legal proceedings. The firm will also use blockchain analysis firm, CipherTrace services, who will work together with U.S. authorities to pursue criminal charges on the perpetrators of the $5.7 million hack.
In a press release this Friday, the core development and accelerator organization of the ETC blockchain stated they would also be working on better security systems after multiple 51% attacks in the past 20 months or so.
Terry Culver, the CEO of ETC Labs, rightly termed the hack as “manipulating a public blockchain to steal,” further stating there will be severe consequences.
“Together, we will cooperate with stakeholders and agencies in the United States and wherever else the investigation leads to analyze the transactions and to identify the responsible parties with the knowledge and motive to carry out these attacks,” Culver said.
“We are determined to protect the integrity of the ecosystem.”
The blockchain has been a victim of 51% attacks in the recent past – facing two successive attacks on July 31st and August 5, losing upwards of $5.5 million in a double spend. According to the statement, the second attempt was similar to the first as the hackers reorganized 4,236 blocks after probably buying hash power from Nicehash DaggerHashimoto, also used previously.
Hashing similar tones to Culver, CEO of ChipherTrace, Dave Jevans said,
“We are proud to help solve this pivotal case, which represents more than a major theft because it is an attack on the integrity of a major blockchain.”
Ethereum Classic has shown resilience in the past after facing 51% hashing power attacks. In January 2019, the blockchain suffered a reorganization attack but little changed on the market, as ETC only lost 6% following the attack. ETC currently trades at $6.84 on Coingecko charts, a sharp 17% fall from highs achieved on August 2, days before the second attack.