Report Claims 34,000 Ethereum Smart Contracts Are Vulnerableto Bugs

Report Claims 34,000 Ethereum Smart Contracts Are Vulnerable to Bugs

Technology & Security

Over 34,000 ethereum smart contracts containing $4.4 million in ETH may be vulnerable to exploitation. That’s the conclusion reached by a quintet of researchers hailing from Singapore and the UK. Their technical report, which is currently undergoing peer review, suggests that millions of dollars in ether may be at risk from poorly coded smart contracts that contain a variety of bugs.

Also read: Bad Code Has Lost $500 Million of Cryptocurrency in Under a Year

Smart Contracts Are Only as Smart as Their Creator

Report Claims 34,000 Ethereum Smart Contracts Are Vulnerable to Bugs“Finding The Greedy, Prodigal, and Suicidal Contracts at Scale” is the provocative title of a research paper submitted by British and Singaporean students last week. Its authors have dived deep into ethereum smart contracts, “finding contracts that either lock funds indefinitely, leak them carelessly to arbitrary users, or can be killed by anyone”. This latter flaw is precisely what happened to Parity last November.

The dangers of relying on smart contracts that have not been independently audited are well-documented. In the past year, $500 million has been lost due to bad code, and around half of that figure involved ethereum. The most notorious case was the Parity bug which led to $168 million of ether being rendered permanently inaccessible, though there have been plenty of smaller incidents where inexperienced or inattentive developers have been caught out.

A Small Drop in a Big Ocean

The authors of the report claim to have used a tool to analyze almost one million smart contracts, of which 34,200 were found to be vulnerable, with 2,365 of these stemming from distinct projects. That means that around 3.4% of all smart contracts are potentially vulnerable to being hacked, broken, or otherwise exploited. Of the contracts that the research team flagged as being exploitable, “the maximal amount of Ether that could have been withdrawn…is nearly 4,905 Ether” worth $4.4 million.

The report continues: “In addition, 6,239 Ether (7.5 million US dollars) is locked inside posthumous contracts currently on the blockchain, of which 313 Ether (379,940 US dollars) have been sent to dead contracts after they have been killed.” One thing the report deliberately omits is the identity of the smart contracts flagged as being at risk. But with almost 1 in 20 contracts vulnerable, and a jackpot of over $4.5 million in ether up for grabs, determined attackers have every incentive to put this research to the test.

What do you think can be done to make smart contracts safer? Let us know in the comments section below.

Images courtesy of Shutterstock.

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PR: World Blockchain Forum Brings Global Blockchain Elite toDubai

World Blockchain Forum Dubai

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. does not endorse nor support this product/service. is not responsible for or liable for any content, accuracy or quality within the press release.

Dubai, UAE

Following the historic response to sister event The North American Bitcoin Conference, held in Miami earlier this year, Keynote has released details of their World Blockchain Forum in Dubai, 16th and 17th April.

Known as a global centre for innovation and investment opportunity, Dubai provides an inspirational backdrop for the 3rd annual World Blockchain Forum. Visionary leaders, economic pioneers and enterprising investors from around the world will come together for one of the most exclusive events on the global blockchain calendar.

As the longest-running crypto-technology conference in Dubai, WBF will delve into the innovative possibilities of blockchain technology, the impact of cryptocurrencies on global financial markets and the shifting landscape of ICOs.

With more than 500 Bitcoin and blockchain innovators and investors expected to attend, WBF – Dubai builds on the success of similar events in London, Los Angeles and Chicago as part of the World Blockchain Forum. The two-day event focuses on the future of finance and investment, successful past and future ICOs, regulation & governance, and considers how decentralization continues to disrupt the banking sector.

“We are thrilled to host another meeting of brilliant minds in the heart of the UAE and look forward to welcoming leaders of the crypto community from around the globe. Since 2015 we have been committed to bringing more companies and dedicating more resources to the UAE, to bring His Highness Sheikh Hamdan’s blockchain strategy and vision to life,” said Moe Levin, Founder and CEO of Keynote.

World Blockchain Forum Program Details
Held at the stunning Madinat Jumeirah overlooking the Gulf, this year’s internationally-acclaimed event speakers look at the ways in which vanguards, executives, and entrepreneurs can innovate the future of a new world economy.

Past WBF Speakers include:
Vitalik Buterin – Co-founder, Ethereum
H.E. DR. Aisha Bin Bishr – Director General at Smart Dubai
Patrick Byrne – CEO, Overstock & t0
Star Xu, CEO – OKCoin
Roger Ver – CEO,
Eva Kaili – Greece, Member of European Parliament
Charlie Shrem – Bitcoin Pioneer
Gabriel Abed – Founder, Bitt
Ola Oudin – CEO, BitOasis
Gabriel Kurman – Co-founder, RSK Labs
Ryan Taylor- CEO, Dash Core
Jason King – Co-founder, Academy
Moe Levin – Founder, Keynote
Ruslan Gavrilyuk – Co-founder,

For a full list of speakers visit:
Tickets can be purchased at:

About Keynote
Keynote was launched in 2012 by blockchain strategist Moe Levin. For further information and details about Keynote and the WBF – Dubai event, visit

For media inquiries, please contact Amandah Hendricks, Keynote’s Chief of Communications at [email protected]

Contact Email Address
[email protected]
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Prosecutors Accuse Chicago Trader of $2 Million CryptoTheft

A trader at a Chicago firm has been charged with fraud after he allegedly misappropriated $2 million worth of bitcoin and litecoin and lied about it to his employers.

According to the U.S. Attorney’s Office of the Northern District of Illinois, the trader, Joseph Kim, was yesterday charged with wire fraud for misappropriating at the funds last autumn. Prosecutors say that he took “at least $2 million of the firm’s bitcoin and litecoin.”

Kim had worked as an assistant trader for Chicago-based trading firm Consolidated Trading LLC, which had recently started cryptocurrency trading.

The U.S. Attorney’s Office stated:

“According to the complaint, from September through November 2017, Kim transferred more than $2 million of the trading firm’s Bitcoin and Litecoin to personal accounts to cover his own trading losses, which had been incurred while trading cryptocurrency futures on foreign exchanges. In order to conceal the transfers, Kim lied to the firm’s management about the location of the company’s cryptocurrency and his trading of the company’s cryptocurrency, the complaint states.”

The true nature of the thefts became apparent in November, the office added. Kim is scheduled to make an initial court appearance on Feb. 16, before U.S. Magistrate Judge Daniel G. Martin in Chicago.

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

PR: Broker Platform Serenity – Why Do We Need AnotherMediator Between the Market and the Trader?

Broker Platform Serenity

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Author: Vasily Alexeev, Serenity CTO

One of the most notable projects in the Internet trading sector with a daily turnover of USD 5 trillion – Serenity ICO – kicked off its main ICO round.

Speaking about this notable event with a revolutionary idea, big team, an event which is supported by many brokerage companies and financial industry experts, we should first understand how the retail forex market works.

A market with a daily turnover of trillions of dollars

The forex market is an over-the-counter exchange market. This market has no specific center where the offer and demand are formed. In fact, its existence is due to the need for international exporters and importers to pay for their supplies, goods, and services in a particular currency. Such activities are carried out by major international banks. With the change of time zones, some banks start working while others are closed. Therefore, the process of currency exchange does not stop on business days. Operations are interrupted only on weekends and holidays. To date, Forex is the world’s largest financial market, far exceeding in volume the stock, bond, oil, gold and any other asset markets.

The fact is that the main purpose of Forex is to ensure the operation of international trade. There is no absolutely self-sufficient national economy in the world; each country, represented by both private and public companies, imports and exports various goods and services. For example, France buys oil from Nigeria for dollars, Nigeria acquires technology from Germany for euros, Germany buys coffee from Brazil for dollars, and Brazil, in turn, buys machines from Japan for yens: millions of economic agents around the world need foreign currency to pay for supplies from abroad. The global flows of goods and services generates demand for foreign currency and, as a result, its offer. As a rule, companies acquire foreign currency from banks, and the latter, in turn, buy and sell on Forex independently or through larger banks, accumulating the demands of their customers. Thus, foreign currency is generally acquired for any own, non-speculative purposes. In addition to large private banks, Forex involves Central Banks of States that buy large amounts of foreign currencies to replenish their own reserves, or to sell it (making currency interventions) to maintain the exchange rate of their national currency. Only a small amount of market is formed by currency speculators: these are traders who buy and sell with the aim of making money on the changes in market prices.

Why an ordinary trader cannot directly trade in a market

Most of the trading operations in the foreign exchange market are carried out by large banks, multinational corporations, and investment funds. They are called market makers who provide liquidity of this market by their huge capitals. The amount of single operations between them are hundreds of millions of US dollars, whereas the volume of market makers’ operations with their customers range from several thousand to millions of US dollars. However, with the development of the Internet and the emergence of leverages, anyone can trade in the Forex market, without the need to have such huge funds.

Brokerage companies are the main providers of trading services both for retail and corporate clients. Large brokerage companies, specializing in servicing smaller brokers, are called liquidity providers. The goal of their activities is to insure major risks and to bring transactions directly to banks, i.e. the market as such. They have appeared because it is virtually impossible for a small broker to open a trading account with a large bank. The businesses of retail brokers are relatively small, whereas the minimum size of transactions and requirements for deposits at the interbank level are too high. Therefore, liquidity providers offer such brokers acceptable transaction sizes, reduce the minimum deposit threshold, and aggregate the trading of small brokers.

Private traders are the most vulnerable link in the financial market

Brokerage companies can trade as simple agents which instantly bring their clients’ transactions to liquidity providers. Also, there are companies that do not bring transactions to the latter and assume the risk of change in market prices. In fact, the both business models have the right to exist and are officially authorized. However, if a broker becomes a counterparty to a transaction without bringing it to the market, he gets profit when the client loses. In this case, there is a conflict of interests between the trader and the broker.

The broker who is interested in his client’s loss, tries, willingly or unwillingly, to guide the trader’s actions so that his transactions are unsuccessful, and the client’s deposit, partially or fully, becomes the property of the broker. Brokers use various tricks, manipulate currency quotations, make contracts in such a way that they could refuse to pay the revenue on any formal grounds. Such manipulations are prohibited by law and by industry standards in developed countries.

However, there are problems that cannot be solved by any, even the most perfect state regulation. Brokers submit reports, undertake to play fair: they are obliged to do this by law. Nevertheless, the regulation of brokerage activities cannot completely protect the traders. First of all, because the broker’s activity still remains non-transparent. Regulators can react only post-factum or when the non-compliance problems become too obvious, or when a stubborn trader passes a dozen of instances, and his dispute is considered by a financial ombudsman, or else a broker declares his bankruptcy. All this requires incredible steadfastness, perseverance and the trader’s will to prove his case, without any guarantee for the trader to get back his money.

And now let’s imagine that about 80% of all retail brokerages around the world are not regulated in any way. These are brokerage companies registered in offshore territories. According to different estimates, up to 5–5.6 thousand brokers operate in offshore jurisdictions. Surely, they include a large number of fair companies.

Such brokers are in demand, because they offer very competitive terms and conditions. These are young companies that are more mobile, innovative and, therefore, much more flexible in their pricing policy. Their services are very popular among tens of millions of traders. But, due to the fact that such brokers are registered in unregulated jurisdictions, these traders are practically not protected. If a trader has at least some chances to get justice in regulated jurisdictions, with an offshore company, he can only rely on the good will and honesty of its owners.

What can Serenity offer in response?

Serenity is building a platform that will unite all willing brokers under its aegis. At the same time, this platform uses the blockchain technology. Through Smart Contacts, the broker will not be able to manipulate the quotations, to withhold the revenue from a trader, to use any other illegal tricks. Serenity is creating a unique KYC center to protect the system from unfair players. In addition, when considering disputes, Serenity will act as a mediator, and the decisions made on such disputes will be binding for all its stakeholders.

Honest brokerage companies will benefit from operating on the Serenity platform, as it will contribute to the growth of their client base. Serenity will be able to provide liquidity to its participants at a competitive price which, in combination with other advantages, will help reduce the brokers’ costs of doing business. The platform will also offer reliable liquidity for crypto-currencies and will allow brokers’ clients to replenish their trading accounts in crypto-currencies. That is, crypto investors will be able to hedge risks associated with the Bitcoin volatility, making transactions with conventional financial instruments.

Summing up, it is safe to say that Serenity will offer the financial market an unprecedented protection against fraud, whereas the ICO of the Serenity project is a significant event in the financial market.

Serenity ICО

Serenity is the first escrow platform for financial markets that protects investors’ funds from fraud and trading interferences by using smart contracts.

· The ICO is held in one stage, from 25 January to 7 March.
· The company plans to raise up to $19 million to develop the platform.
· The nominal price of a token is 0.0001 ETH. The price during the crowdsale will range from 0.00006 ETH to 0.00009 ETH.
· Stock ticker SRNT.
· SRNT token has been listed by the largest Russian exchange, Yobit. Talks with several more exchanges are currently underway.

The project has been supported by major brokers from the Forex and binary option industries, including IQoption, Liteforex, NordFX, as well as Alexey Kutsenko (Founder of Tools for Brokers), Yagub Rahimov (adviser of the ICO project and founder of AtoZForex), and many others.

Contact Email Address
[email protected]
Supporting Link

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Former Iced Tea Maker Cancels Purchase of Bitcoin MiningRigs


Less than a month after agreeing to purchase 1,000 AntMiner S9 crypto mining rigs, former iced tea maker Long Blockchain has scrapped the plan.

In a Friday filing with the U.S. Securities and Exchange Commission, the company announced it would not purchase either the mining rigs or the power supply units it had originally indicated it would buy in a filing early in January.

No reason was given for the change in plan. However, when the purchase deal was originally announced, it was noted that the company had until Jan. 31 to raise $4.2 million to complete the transaction.

At the time, Long Blockchain said it would issue 1.6 million shares of common stock to raise $7.7 million.

It is unclear how successful the company’s fundraising attempts were, though the company did call off its stock sale a week later.

Shamyl Malik, head of the company’s blockchain strategy committee, said in a press release that buying bitcoin mining computers was only one aspect of the overall strategy. Despite the decision not to buy the AntMiners, which Malik said “was negotiated as a no-risk option to the company,” Long Blockchain still believes in mining cryptocurrencies.

Malik continued:

“We will continue to evaluate the purchase of mining equipment for Bitcoin and other digital currencies as part of our larger blockchain initiative, which includes among other potential transactions the proposed merger with [blockchain startup] Stater.”

Since the beginning of the year, Long Blockchain’s stock price on the Nasdaq exchange has fallen nearly in half, to $3.10 Friday. At current trading levels, it runs the risk of being booted off Nasdaq’s exchange.

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].