The ICO managed to raise $7.53 million before it was hacked.
An initial coin offering (ICO) for the start-up project CoinDash was abruptly stopped on July 17. The ICO managed to raise $7.53 million before it was hacked.
The ethereum address CoinDash was using was reportedly altered to a fake one by an unidentified hacker, according to coindesk.com.
The CoinDash website was shut down, and the team asked affected invetors to submit information to a link provided by them, so that they can collect their CoinDash token (CDT).
In a statement, the company explained:
“Contributors that sent ETH to the fraudulent Ethereum address, which was maliciously placed on our website, and sent ETH to the CoinDash.io official address will receive their CDT tokens accordingly.”
The sale was terminated as the project is still under attacks. CoinDash urged investors to stop sending ether to any address because “transactions sent to any fraudulent address after the website was shut down will not be compensated”, as they pointed out.
While ICO funding is gaining popularity, events like the CoinDash hack show that it can be insecure. Last year, $50 million were reportedly stolen from a project called The DAO. The hacker drained more than 3.6 million ether into a “child DAO” that has the same structure as The DAO and the price of ether dropped from $20 ro under $13, as coindesk.com wrote at the time.