White Hat Hackers Caught Red-handed During Attempted ETC Sell-off

There is still a significant debate going on regarding the Ethereum Classic funds obtained by self-professed white hat hackers. While they secured 7 million coins, several transactions were sent to exchange wallets in an attempt to cash out the money. An explanation was posted on Reddit, which seems to indicate funds will be returned to The DAO token holders after all.

The White Hat Hacker Plot Thickens

Albeit no one should trust self-professed white hat hackers by default, many people were confident in the team “tasked” with recovering funds stolen during The DAO attacks. With 7 million ETC at stake, funds have to be secure to prevent it being dumped on the market and crash the Ethereum Classic price.

After the funds were recovered by the white hat hackers, some transactions were sent to exchange wallets  This caused a lot of speculation among Ethereum Classic enthusiasts, as there was no official explanation for doing so. Moreover, the ETC price saw a significant decline, which seemed to indicate the funds was being sold-off by these “trustworthy” individuals.

A new post by the white hat hackers has surfaced on Reddit not too long ago, which addresses this situation. It is a rather impressive slab of text, which seems to blame other parties for these actions being taken. The hackers claim to have received “signals” from the “greater community” to convert the ETC funds to ETH. As a result, that funds would then be used to fund Ethereum development.

After facing a lot of negative feedback for these actions – seemingly orchestrated by the Ethereum Foundation – the hackers have decided to take a different approach. Right now, the plan is to return all ETC tokens to The DAO token holders. How this process will be accomplished, is anybody’s guess right now. We do know the white hat hackers will “ask exchanges to return funds.”

It goes without saying this entire debacle goes to show these individuals should not be trusted with the ETC funds by any means. Their initial attempt to dump the coins on the market was sniffed out, and now they are presenting a bogus story to put the blame on someone else. By the look of things, this debacle is far from over right now.

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  • Dario

    What a manipulating title. The story is just a summary of what already have happened.

    • Jordan

      So you knew what the story was about by the title? How is that manipulating?

      • Dario

        “White Hat Hackers Caught Red-handed During Attempted ETC Sell-off”
        Any prove they attempted to sell-off yet?

        • Jordan

          They admitted it, except it wasn’t to pay back DAO-C owners, it was for the Ethereum Foundation.

          • Dario

            Interesting. Could you show where they admitted wanting to sell it off?

          • Jordan

            The Reddit cited by this article.

          • Dario

            Yes and no.

            Yes, they admitted wanted to convert to ETH.

            No, they didn’t admit they had bad intentions while doing so, which is what ‘Caught Red-handed’ implies.

            Let me stand corrected by saying it’s a ‘clever’ title instead.

            And for the record, my opinion is that they DID have bad intentions.

            PS: It was a long and emotional crypto-night.

          • Jordan

            They were devious and had to be corrected by the community. I think that’s what they mean by being caught red-handed.

          • Claudio Levrini

            Sure please give me your private keys. I’ll just convert your money into my crypto and then use it for my needs. Seems legit right?

  • Shakedog

    Judging from all the information we have so far, I’m more inclined to think that Jordi et al wanted to prevent DAO token holders from the complications of holding DAO-C since most are running ETH clients. Assuming foul play is jumping the gun a bit, though I do admit the white hats have accidentally overly complicated the process. Jordi is well known in the ETH community so we should trust his intentions more than an anonymous individual. Time will tell how DAO holders will be compensated, but another refund contract could be the easiest way.

  • Jordan

    Ethereum Foundation – shady and definitely greedy

  • ETCjdo

    They are criminals, afraid to compete against ETC they need to cheat and create an uneven playing field.

  • Break out the popcorn, if you have any left after the dao sale / hack / fork drama…the chains of our lives, chapter 2…

  • But like everything else…they were acting as individuals and the foundation had zero knowledge of any of it. LOL!!! Maybe if you arrived on the crypto scene yesterday, those of us that have been here know exactly what the real story is. Trustworthy people are few and far between in crypto, especially enough to form a foundation. Moolah? Garza? and now Buterin and company. Oh and don’t forget XC Dan Metcalf. Wake up crypto.

  • Claudio Levrini

    So not just poor leadership but also mediocre thiefs. If I were a DAO stakeholder I’ll be very upset.