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Warning of Potential Exchange Hack Using EOS Vulnerability

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Cornell Professor Emin Gun Sirer has predicted a potential exchange hack in the near future that will take advantage of an EOS vulnerability.

In a post on twitter, the blockchain enthusiast said:

I’m calling it: there will be a massive exchange hack within the next year, taking advantage of an EOS vulnerability. That exchange will lose its hot wallet. Hackers will send the proceeds to downstream exchanges where they will trade into other coins.”

It’s the most recent in a long list of criticism EOS has received during its year-long $4 billion ICO and more recently in the run-up to its problematic launch last week.

Sirer doesn’t specify what he believes the vulnerability might be but argues that such an exploit is inevitable considering how a recent bug problem was dealt with. The problem in question was a bug that froze the EOS network just hours after launch and prompted a conference call between block producers to resolve. The incident was dubbed ‘consensus by conference call’ by one critic on Twitter.

This type of governance was also criticized by Sirer in a further tweet, pointing out that exchanges don’t realize that EOS’s governance model “does not mix well with other currencies”. He further predicts lawsuits and a spread of the hack should EOS use its arbitrators to attempt a reversal.

The way in which the recent bug was fixed has raised questions about whether it’s just a temporary patch for a much bigger problem. Following the repair, EOS block producers decided amongst themselves to freeze seven accounts which they believed were at fault. This action brought about a new wave of criticism, with many citing a violation of the EOS constitution.

Computer scientist Nick Szabo voiced his concerns about the bug and resulting repair job, describing the EOS constitution as a socially unscalable security hole.

We can only hope Sirer’s prediction doesn’t come to light but with all these recent issues and ever-growing criticism, unfortunately, it seems quite possible.

Image From Shutterstock

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