BREAKING: Ethereum Update Delayed / Exchange Cryptopia HACKED for 2.5 Million

you know what's up guys it's my cold welcome back to box mining so this is quite an emergency update to dnews video and this is because there's an emergency halt a last-minute halt to the update coming to a theorem called Constantinople so originally that was scheduled to be around today tomorrow but it seems to be the case that there was a security flaw that was detected which meant that the whole team the devs had to call each other and decide you know what they had to hold it so in this video gonna look as to what this bug is and what that means for a theory of network and for us all going forward there was also very important happening used with exchanges yesterday so the exchange crypto Pia you probably know it as the exchange of all the low caps and pretty much where all the pumping dumps happen that exchange has been hacked for 2.5 million dollars so as of right now the exchange has halted all their withdrawals and they contacted the police so we're going to look into these two news articles in quite a lot of detail and as always every card here is my personal opinion not financial advice let's get straight into it alright let's start with Constantinople so this is the blog update explaining what is happening so there's a security alert and there's a postponement I'm concerned Opel so what happened there what caused this emergency call to happen for all the deaths to essentially say you know what we have to postpone this and you guys are you know worried or panicking or or you know concerned right now as of right now because the forth is postponed nothing is really gonna happen on the etherium Network so if you are just a theorem user and use my ether wallet waithere IAM you don't have to worry about anything this is really much affecting miners and note holders and if you are a note holder I'm just gonna tell you right now what you have to do the instructions are here I'm gonna put all this on a blog post if you are running a full node or you're a miner just upgrade to the latest version of gif or parody depending on why you're using all right so let's jump into what exactly was reported so this is an external audit security report and what they were reporting is that because of the new upgrade to aetherium there is a new type of attack that can take place on existing contracts that was not possible before this for so this type of attack is quite devastating because it allows the attacker to potentially withdraw funds from a contract and do it multiple times with follow the other party knowing so it's kind of a little bit like how crazy the Dow hack was basically hackers can steal money from vulnerable contracts that were not vulnerable before at this update and this is why all the devs when they saw this they were like okay we gotta we're gonna pull this at the eleventh hour I mean we're so close we had so many beta tests for Constantinople where you know we already you know uploaded that to rest bolt and press pause and test net with us that's what they theorem team did the update loaded that already they were testing it there were like months of testing and just before just basically a few hours before this update was going live basically they had to pull the plug and say you know what this security flaw was so important so exactly what was happening here and what could have allowed this it seems to be the case that Constantinople because of the gas cost reductions to what they call dirty addresses it allows actions that were not possible before to happen on the new upgrade so initially this type of attack could not happen because the gas cause essentially for something for like this to happen was 5,000 and now because of Constantinople lowered the kind of withdrawals and functions to two hundred giving the attacker additional gas to initially additional actions on the chain so this is probably unforeseen it was very much kind of like them thinking outside the box so what I do have to say is the security team did really think outside the box to speak well what could really happen in this case and what could kind of like be vulnerable they did do a scan to say you know what what was attackable now like what what could be possible its did scan various contracts in theory I'm definite and they did not actually uncover any vulnerable s'more contract salsa kind of interesting things so that was like so out of the box that you know why it didn't affect every single contract out there but they still did have you know a test contract they can you know exploit using this bug and they also have this test here so if you are developing yourself you can also test if your smart contracts are vulnerable to the security bug now the theorem team do you know responded very responsibly they made a call they called each other and said you know what we have to delay this the extent of the delay is currently unknown what they did is after a three-hour probably very tiring call they decided you know what we're gonna do another call with the core devs on Friday to determine the fate of Constantinople update what the current suggestion is is that they just pull the update the EIP that was responsible to improve a protocol that was responsible for this there were four initially that were gonna be released they could just potentially pull that one back and this release the three asses and they're concerned here and the reason why people are pushing for the release of Constantinople it's also because it reduces minor rewards so this is a bit of cold debt it's not affected by this blog and they want it to be up this update to go on because it reduces the amount of miners get and a lot of people think that because it reduces the new supply of aetherium it also increase the value of e theorem so that's why a lot of people like Harry Harry Harry you know let's get this update released but anyways regardless the news will come on Fridays we just have to wait for it what does it mean off for assume right now if serum drop the most so right now we're seeing a little a little bit of blood on the markets but if you're in the drops around 6% which isn't the greatest amount I saw a few reports like all he theories bleeding because of this but honestly we've seen lower levels in the past 24 48 hours so my expectations here is that a theorem will be delayed new updates especially the new proof of stake upgrade that will potentially get delayed because of fixing this bug right now the nice the only time to examine so in terms of this gas cause optimization it might take you know up to three months for them to really examine the effect of this and also how to fix it and this really goes to show you know like for me personally that these protocols are insanely hard to upgrade and if any single small flaw there could potentially cause drastic effects to anything that's surviving on it because this existing contracts could be affected and because of flaw they're a fatal flaw there people might lose their money and this is why it's so hard to upgrade protocols once it's live next up with some really bad news concerning crypto Pia so crypto Pia is where they say the New Zealand exchange where a lot of these small cap coins lived and unfortunately they were hacked for 2.5 million dollars today so right now this is the Twitter account they're trying to keep everyone updated but it seems to be the case that they reported the hack to the New Zealand Police and the high tech Crimes Unit and they pretty much shut down the exchange so now you cannot go on crypto Pia and withdraw funds because well there's funds are not safe ooh not sure if that's really to make that joke but as of right now the the maintenance mode is on they are you know in pretty big trouble because of the amount stolen and right now they are unable to update anyone on what's happening which is pretty bad news right so it's pretty terrible to have that amount of funds lost from exchanges everyone is still reacting to this situation I mean I hope I know I want to ask you guys here you know did you lose any money on Cook topia was a substantial amount you know leave a comment below and how would that affected you for me personally you know did this come to a surprise for me not really because we've been talking a lot about how exchanges are now the prime target for hackers and also at the same time exchanges because of the way to run we kind of potentially expect other exchanges to your fall victim to Oh hacks or become hacked because their company can no longer run this is something that we saw in the past of mt.gox being a personal victim like I got my funds hacked and this is why I'm paranoid to this day and you know I talk about you know proof of keys and why I don't want to keep funds on exchanges it's interesting to also see cz jump on this as well so cz is the CEO of Finance and he puts a three-hour saying store coins yourself you fight hackers your cell phone card from losing hot wallet yourself computer breaks USB gets lost blah blah blah store on exchange only use the most reputable proven exchanges meaning you know violence Oh what my comment about that is that walls it might feel like you know storing your own crypto and your USB and your ledger or your treasure seems to be hard the key advantage of that is that you really have that crypto I actually don't really agree with long-term story on exchanges even if they're reputable just remember empty at that time it was the biggest exchange at that time it was basically a finance and I really you know if you guys weren't affected by this hack do remember that the exchanges aren't safe and just keeping the crypto yourself that is something that's an important skill to learn and to learn how to do properly right now just even taking test sends amount to yourself and then storing at yourself and figuring out what's the best way to do it this is absolutely valuable for us in the long run in terms of crypto Pia the accessible speculation is that the hacker is the same hacker that attacked ether Delta so a few people did analysis of the attack and what they found was that input addresses for the attacks seem to have this a few of the same addresses overlap with the attack for ether Delta so it seems like the same hacker attack again attacked again to steal these funds so definitely be on the watch out hope they can really catch this guy in terms of other smaller bits of news we got the treasure wallet they're adding etherium support directly into a wallet and this is a pretty good move I mean we had this like whole drama between my ether wallet and my crypto these were the interfaces that you have to use with you were using a treasure or a ledger and I think what they're doing here is that they're directly using your own client which gives us a little bit of safety because well it means that there's another kind of source of client to use and we're safe from the crazy drama that we saw last year interesting thing is that it seems like tracer is going for that you know my ethereum integration and ledger is going for Bluetooth and mobile support so upcoming on my video I have to see as I checked out their booth at CES for Ledger nano X and I also had a you know use of the interface as well so I hope to show you guys that soon and if you guys want to preorder any DC vices you know just follow the link down below it also supports this channel as well all right last bit of kind of interesting stuff is that I get to be the moderator for one of the first panels on the finance conference so finance conference is starting on the 21st of January which is coming up in three days so this panel is pretty interesting it's gonna be a very kind of controversial topic it's Kotaro lessons learned from crypto and token investments and it features quite a few big names in the investment space we got someone from Sigma John mmm got Dobie Wang from primitive Richards and she was in th BC before Jamie Burke and Vincent Joel from fpg so why I'm talking to you guys about this is that if you guys have any questions that you want to ask them or want to interact or kind of like I'll suss out what they were like and what they learned you know leave a comment below I love to have you know some of your questions asked during this panel and I think it's gonna be a great learning experience because of how can a very broad that kind of panel is and what I really hope is that they can be honest and shear some of the mistakes that they made and you know you share that with us and the whole community so I hope to keep you guys updated on that and also the bynars conference it features a lot of kind of familiar faces we've got that whole fee we've got just a son from shrine we got Ted Lynn he's doing growth got Sam he's doing a lot of trading so Patrick died from quantum Vincent row so if you guys want any interviews if you guys want to hear a lot of these people I can try to schedule a few interviews with these guys as well so I'm you know leave a link below check out the page for finance conference leave a name for below who you think would be cool to interview and to ask questions for and I'll try my best to locate them and hunt them down and get them on this channel so guys that's it for today's episode thank you guys so much for watching if you guys like the content and the update do like hit a thumbs up it really helps this channel grow and remember to subscribe to this channel as well thank you guys so much for watching see you next time

39 thoughts on “BREAKING: Ethereum Update Delayed / Exchange Cryptopia HACKED for 2.5 Million”

  1. they realize this bug only now and just when they wanted to get stingy with the miner's block rewards to benefit the holders class scarring both , hie hie hie hie hie hie


  3. Well done on being on the panel! I would live an interview with Da Hongfei about Neo's future and any of the ladies about how they made it in the male dominated cryptosphere.

  4. this just shows you how early this whole market is. Lol they didnt even find the bug themselves. Pathetic. Couldve put billions of dollars at risk.

  5. Ethereum is really struggling right now.
    While competing with start-from-scratch and better engineering platform like Cardano.
    And ambitious one like EOS.
    I really feel for the Ethereum's developer.

  6. Michael, you’re expertise and coverage about this topic are amazing. Even though this is happening now with Ethereum, we can notice that those vulnerabilities are reported hours before a major upgrade is happening.
    Are there companies exclusively focused on exploiting security / double spending vulnerabilities? Which ones are the major ones?
    Do games like “Games of Stakes” could benefit from those companies?

  7. why all about etherrum? you all are to deep to see ethereum failing. move on don't hold past left it where it belong

  8. Hi Michael , I love 💕 your channel I think it is great. It would be magic to see an interview with Tom Lee he is a positive influence to us all.

  9. I have some assets on Cryptopia and I surely hope to get it back. But if not, I will not be devastated. I knew the risks.
    Any exchange can be hacked. Any wallet. Any coin.
    Bigger ones are usually more protected but then they are more attractive as a target.
    Hacking is the main risk of digital finance which digital money propagandists forget to mention all too often.

  10. A bug "caught"? Good news. A "pump & dump" exchange is closed for some time? Also a good news – there will be fewer stupid speculations. Those are good news.

  11. Indeed a set protocol once activated, it becomes very difficult to fix bugs etc. thats why i am looking forward to cardano!

  12. I bought enj and amn there. I moved to the amon online wallet last year… Lol… I didn't want anything wise there but AMON

  13. Michael, pls I am so scared of exchangers now, other than ledger or trezor what is the best way to store my coins??

  14. NeonExchange livestream on the 18th Jan. It's going to be a big reveal. And confirmed btc/ltc with fiat on launch!

  15. Sad that this can happen in this way, with currency being around for a lot of years now security should be better.

  16. People need to learn to use DEX's like Switcheo where possible. Also if you leave your tokens on exchanges you are not assured of getting any airdrops etc.

  17. Also I got some tokens from my Brave browser, any way I can send them to u to support ur channel? I don’t see a way to send the BAT from the embedded wallet in my browser. If I can I wanna hook u up with those tokens for all ur good work!

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