You are here

Hack attack drains start-up investment fund: Time Business News

Hackers have taken control of virtual cash worth $60m (£41m) by exploiting a bug in a system designed to help start-ups.
The attack targeted an investment fund called the DAO which is based on technology derived from the Bitcoin crypto-currency.
DAO members are now debating how to recover the diverted funds.
One suggestion involves rolling back the entire computerised system to a time when the hack had not happened.
'Nightmare scenario'
The DAO, or Decentralised Autonomous Organisation, acts as an investment fund that people buy into by swapping real cash for a virtual currency known as Ether.
Using Ether, people could buy DAO tokens that they could "spend" to back start-ups and investment opportunities looking for help via the fund. Earlier this year, investors put about $150m of Ether into the DAO.
Ether was developed by a company called Ethereum which has been at the forefront of work to use the technology and ideas behind bitcoin in other ways. The DAO was an attempt to use it to create a crowd-sourced autonomous fund owned by its participants that was free of the third-parties involved in more traditional venture capital investment vehicles.

Time Business News
4DBC Member


1649 Viewed Approx.