AurumCoin Users Face Losses in a 51% Attack

Summary

In November 2018, AurumCoin (AU), a relatively lesser-known cryptocurrency, was hit by a 51% attack. During the attack, an anonymous entity was able to gain control of a majority of the network’s hash rate, which enabled them to alter the blockchain ledger and perform double-spend transactions. The attack resulted in the loss of 15,752.26 AurumCoins from the Cryptopia exchange, which was valued at approximately $500,000 at the time.

Attackers

The attackers remain unidentified.

Losses

The attack led to the double-spending of 15,752.26 AurumCoins, which were withdrawn from the Cryptopia exchange. At the time, these AurumCoins were valued at approximately $500,000.

Timeline

• November 2018: The 51% attack occurs as the anonymous attacker gains control over the majority of the network’s hash rate, which enables them to alter the blockchain ledger and execute double-spend transactions.
• November 2018: Cryptopia exchange reports a loss of 15,752.26 AurumCoins valued at approximately $500,000 due to the attack.

Security Failure Causes

• Centralization of hash power: One of the main factors that contributed to the attack was the centralization of hash power. The attackers were able to gain control over a majority of the network’s hash rate, which enabled them to alter the blockchain ledger.
• Smaller network: As AurumCoin was a smaller cryptocurrency with a lower hash rate compared to larger networks, it was relatively easier and less costly for an attacker to gain the hash power needed for a 51% attack.
• Lack of security measures: AurumCoin did not have sufficient security measures in place to protect against or mitigate the effects of a 51% attack.