Parity Ponders Hard Fork Fix for $160 Million in Frozen Ether

Parity Ponders Hard Fork Fix for $160 Million in Frozen Ether

Parity technologies have a report about the investigation that they made into multi-signature wallet bug, which froze millions of dollars’ worth of ether.

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Parity technologies have a report about the investigation that they made into multi-signature wallet bug, which froze millions of dollars’ worth of ether. It is unfortunate to the wallet owners because the analysis that they gave didn’t give any solutions.

The previous week, five hundred and eighty-seven wallets that had a total of 513,774.16 ether, which is worth one hundred and sixty-one dollars at the current exchange rate were locked permanently after the exploitation vulnerability in their library contract that manages Parity’s multi-sig wallets.

One of the startups affected by the bug believes the exploitation was intentional and the prevailing theory was that an experienced programmer triggered the bug, which in turn gave him the ability to control parity library contract. After he or she gained the library contract ownership, he or she panicked and the solution was to suicide the contract. This logic was referenced in parity library all multi-sig based wallets. As a result of the exploitation, the funds in all the five hundred and eighty-seven affected multi-sig wallets are locked and they cannot be accessed by those who own them or anyone else.

This is the second time in the duration of one year that Parity vulnerability has been shown in a significant way to the detriment of the users of the multi-sig wallets. A few months ago, about thirty million funds were stolen by a hacker who activated a bug in the multi-sig wallets of the organization. But, unlike the other previous hack, the money that is affected by the hack are not stolen but locked so programmers are looking for means to find a solution to restore affected wallets.

According to the latest update, Parity stated that they are working on a solution that will get the funds unblocked. The post ‘EIP156’ indicated that the ethereum improvement proposal will help users to recover their funds that were made to be stuck by past several users. This includes the hard fork residual effects that gave rise to the creation of ethereum classic. EIP156 also must be implemented through a hard fork, something that is making people because it might trigger Blockchain split.

In response to this issue less than an ideal solution, parity used an apologetic tone. “We apologize for what this incidence is causing among our clients and in the entire community”, Jutta Steiner the parity founder said. “We are using all the means possible to come up with a solution and we thank everyone for the support you have issued to us so far”.

At the moment, organizations and startups whose funds are affected will have to be patient and have high hopes that the ethereum price will not decline before the solution is implemented.

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