Coinsilium comments on CoinDash ICO hack

Coinsilium Group (NEX: COIN), the accelerator that finances and manages the development of early-stage blockchain technology companies has made note of the announcement made by CoinDash Ltd, on July 17th, 2017 with respect to its token sale event.

Coinsilium confirms that its initial investment of $75,000 in CoinDash via a convertible loan agreement including its entitlement to bonus tokens, was conducted outside of yesterday’s token sale and as such remains unaffected by this security breach.

CoinDash reportedly had its website hacked and ETH contribution address changed when they switched the website over to the public crowdsale after its white-listed invite only participants finished their contributions. Many questions still linger with the incident leaving many with a bad taste in their mouth. It remains to be seen if any long term damage has been done to the project.

Eddy Travia, Coinsilium CEO, stated:

 “Whilst as a result of this unfortunate incident CoinDash’s TGE raised less funding than originally intended, it is important to note CoinDash’s intentions to make good participants impacted by the breach as per the statement on their website. It is also important to note that Coinsilium’s financial position was not compromised in any way by this incident and our investment in CoinDash, on the basis of the convertible loan and our entitlement to bonus tokens, remains unaffected.”

“We are confident that the CoinDash team will pursue its work on the social trading platform and deliver a service in high demand among token holders as they have always intended to do and they can rely on Coinsilium’s support in doing so.”

CoinDash is asking participants to help investigate and update their status and solve the issues from the token sale by filling out a claims form.

The statement from CoinDash on the matter can be seen below:

Dear CoinDash contributors,

The CoinDash Token Sale opened to the public on July 17 at 13:00 PM GMT, starting with a 15-minute heads up for whitelist contributors. During these 15 minutes, 148 whitelisted contributors sent 39,000 ETH to the token sale smart contract that was secured with a multisig wallet.

The moment the token sale went public, the CoinDash website was hacked and a malicious address replaced the CoinDash Token Sale address. As a result, more than 2,000 investors sent ETH to the malicious address. The stolen ETH amounted to a total of 37,000 ETH.  

CoinDash has launched an internet forensic investigation to determine who was behind the hack. We will do our best to identify the responsible parties, and are exploring options for further assistance. We have contacted law enforcement agencies and fully cooperate with them on all matters of this incident the community and our contributors will be updated as soon as we have answers.

CoinDash will credit investors who sent ETH to the fraudulent address with the CDT amount they would have received by sending their ETH to the correct smart contact address. We are currently gathering information regarding each of the attack victims and will release the complete list for our contributors and community review shortly. CoinDash will further compensate its contributors using the resources at its disposal. More details will be released as soon as we have a complete list of all the people who were affected by this attack.

We considered many alternative routes to ensure that our investors are made whole to the best of our abilities and the token sale remains fair. Distributing the tokens is the only way to ensure its value will not be lost completely. It is incumbent upon us as a company to continue to build the product that our investors valued.

The only way now is to move forward. The company’s vision is intact and the products we are developing are still in high demand (even more so now). Such malicious attacks will not divert us from developing a product that will make crypto investments more accessible to the public.

We are amazed and humbled by the support and patience shown from our core community, early sponsors, contributors, and advisory. We suffered a hit and there are no simple or easy solutions, just hard work, and improvements ahead of us.

We will continue and update the community on a daily basis. For more information and updates, please visit our website coindash.io. It is clear to us that the road ahead will be challenging and your continued faith in our project is without a doubt the main reason for us to continue and create the future of trading.

Sincerely and respectfully,

Alon Muroch, Adam Efrima, and the CoinDash team