Financial Services // Web Services // Israel
A cryptocurrency startup said someone interrupted its initial funding round and made off with $7 million.
Cryptocurrency trading platform CoinDash held an initial coin offering—a way of crowdsourcing funds—but on July 17 claimed that its investors’ funding had been intercepted, Bloomberg reported.
The company asked investors to send funds through the digital currency called Ethereum to a specific address. A third-party hacked CoinDash’s website and changed the recipient address to an alternate where it could receive funds instead of CoinDash. CoinDash stopped the ICO when it discovered its funding was going elsewhere.
CoinDash said it is working with Israeli law enforcement and released a plan to credit affected investors with CoinDash tokens.