The Ethereum Foundation was reported by its “predecessor”: The DAO was stolen because it was directed and acted by oneself

6 months ago
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Ethereum, why are you so popular because of old stories?

Original - Odaily

Author - 0xAyA

The Ethereum Foundation was reported by its “predecessor”: The DAO was stolen because it was directed and acted by oneselfSolana’s offensive is coming fiercely, but ETH seems to be unable to fight back. No, recently, Ethereum has faced another “accusation crisis.”

ETH has faced many dangerous moments, the most thrilling one being The DAO incident. This hacker attack almost destroyed the entire community. In the end, the two sides who supported the rollback and those who opposed the rollback stopped arguing after the fork was completed, and everything seemed to be settled.

But just recently, a former member of the Foundation made remarks, pointing out that The DAO incident was planned by members of the Foundation. Is this statement true or false?

Ethereum’s past 7 years ago

Lets briefly look back at history. DAO, or decentralized autonomous organization, was a concept first proposed by V God. DAO relies on smart contracts to run on the blockchain and has no legal entity. We can understand it as a decentralized company.

The DAO is a crowdfunding project launched by the blockchain company

The Ethereum Foundation was reported by its “predecessor”: The DAO was stolen because it was directed and acted by oneself is a company that combines blockchain with the Internet of Things. At first, they just wanted to use Ethereum to develop their universal sharing network. As development progressed, they discovered that the decentralized sharing economy was very promising. They demonstrated the concept and vision at Devcon 1 in London, and surprisingly, the response to the project was overwhelming. So, there was The DAO project.

In The DAO project, token holders have great power - the use of project funds requires token holders to vote, and relevant proposals are supported by smart contracts.

On April 30, 2016, The DAO project began crowdfunding. The project token, DAO, was crowdfunded for 28 days and raised a total of more than 12 million ETH, accounting for almost 14% of the total amount of ETH at the time, with a current price of over $150 million.

On June 12 of the same year, Stephan Tual, one of the main designers behind The DAO, claimed that they had discovered a recursive call vulnerability problem in the software.

However, perhaps the joy of successful crowdfunding concealed the potential danger. On June 17, hackers exploited a recursion vulnerability in The DAO code to continuously separate assets from The DAO fund pool; subsequently, hackers exploited The DAO The second loophole, to avoid the destruction of assets after separation, carried out more than two hundred attacks, stealing a total of 3.6 million Ethereum, more than one-third of the total amount of Ethereum raised by the project.

Under normal circumstances, The DAOs assets will be destroyed after they are separated. However, before the call ended, the hacker transferred the stolen The DAO assets to other accounts to avoid being destroyed. Fortunately, it is precisely because of these bad codes that hackers cannot withdraw these Ethereums. Because the code stipulates that withdrawals can only be made after 28 days, this gives the community enough time to research countermeasures and hackers can exploit these two vulnerabilities.

Finally, after community discussion, it was decided to fork ETH. The fork formed two chains. The original chain that did not change the fact that hackers stole money became ETC, while the chain that erased the fact of money theft became new ETH, each representing a different community consensus.

Reported by ex after 7 years

Steven Nerayoff, the former legal counsel and consultant of the Ethereum Foundation, said in a recent blog interview that Buterin once lived with him in New York and worked in an office he rented. On his blog, Ethereums DAO hack was the work of an insider. He claimed that TruthLabs found evidence that the Ethereum Foundation and were behind the infamous The DAO hack, arguing that Ethereum had Becoming a system influenced by a handful of developers, regulators, and investors that acts contrary to the community’s intentions.

At the same time, Nerayoff also named former SEC director Bill Hinman, pointing out the potential impact of Hinman’s personal financial conflicts on the SEC v. Ripple case.

Since then, X users have dug up an articleGitHub articles, the article accused Swiss SA Bity of possibly cooperating with other organizations operating under the name of White Hat Group or Robin Hood Group and being responsible for the theft of The DAO. They still hold approximately 7,000,000 ethers currency, and the white hat group is organized by Alex Van De Sande of the Ethereum Foundation.

The Ethereum Foundation was reported by its “predecessor”: The DAO was stolen because it was directed and acted by oneself

Interestingly, Steven Nerayoff was charged with criminal racketeering by the U.S. Department of Justice in 2019, and his personal credibility was hit. A New York judge dismissed the charge in May 2023 and cleared him of the charges.

Are Nerayoff’s accusations true or false? We don’t know for the time being and await an official response, but at least the accuser’s remarks have given ETH a glimmer of attention again in this bull market where it has been absent?

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ODAILY reminds readers to establish correct monetary and investment concepts, rationally view blockchain, and effectively improve risk awareness; We can actively report and report any illegal or criminal clues discovered to relevant departments.

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