Edgeless response to Parity hack

Tomas Draksas
Jul 20, 2017 · 2 min read

What happened?

2017.07.19 — Parity multi-sig wallets written by Gavin Woods (ex. CTO of Ethereum Foundation) got hacked due to a small bug in the code. Technically speaking, this hack put at risk all the Ethereum tokens which are stored in these multi-signatures. Since Parity is an industry standard, that’s almost every Ethereum project and major crypto exchanges.

And it happened!

How large damage is?

At that night, it all got hacked. Most of ‘multi-sig’ wallets got ‘successfully hacked’ by whitehackers.

Source: https://etherscan.io/address/0x1dba1131000664b884a1ba238464159892252d3a

Unfortunately 3 Ethereum projects did not make it to the white-hack list: Edgeless Casino, æternity and Swarn City.

æternity: https://blog.aeternity.com/parity-multisig-wallet-hack-47cc507d964d

Swarm City: https://press.swarm.city/parity-multisig-wallet-exploit-hits-swarm-city-funds-statement-by-the-swarm-city-core-team-d1f3929b4e4e

and we, the Edgeless Project. We confirm a loss of 26 793 ETH ( 5.6 mill $ ) which are held by the hacker: https://etherscan.io/address/0xb3764761e297d6f121e79c32a65829cd1ddb4d32

What does it mean to Edgeless Project?

Gladly we diversified our funds right after an ICO and we have a sufficient amount to run the project. Additionally we got our funds when ETH was 15$ — 50$ per unit and now ETH price is way much higher which covers our hacked loss. It means our platform launch will be happening in Q3. However, we made some changes in our dapp structure. From now it will be purely ran on EDG tokens, since a large part of our ETH was supposed to be our casino’s bankroll.

That means, if players want to gamble on our platform, they will need to get EDG tokens.

What will you do with Gavin Woods and Parity?

Edgeless, æternity and Swarn City formed a group to address this question. It will be announced in a near future.

Tomas Draksas

Written by

Edgeless.io Co-founder, Professional Gambler and Poker Player