Future Society

This Crypto Wallet, Devised by a Co-Founder of Ether, Has a Major Breach

More than $30 million has already been reported as stolen.

Parity – the “world’s fastest ethereum client” –  just posted an alert on their blog warning of a vulnerability in version 1.5 or later in its wallet software. The alert advises users to “…immediately move their funds to a secure address.”

Users are scrambling to learn the extent of the breach and if their funds were made vulnerable. Coindesk reports that, so far, 150,000 ether (worth $30 million) have been reported to the company as stolen.

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Parity claims to be the “most secure way of interacting with the Ethereum network.” The project was originally devised by a co-founder of Ethereum, Gavin Wood.

Decentralized technologies are rapidly emerging as cryptocurrency is increasing in visibility and popularity. Regardless of how much currency was stolen, the optics of such a breach are not good for these emerging technologies. It will be difficult for them to become a new standard if adopters cannot rely on the highly-touted security of the platforms.

Disclosure: Several members of the Futurism team, including the editors of this piece, are personal investors in a number of cryptocurrency markets. Their personal investment perspectives have no impact on editorial content.

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