51% attack on Firo loses stock markets millions of dollars

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The privacy-focused cryptocurrency, previously known as Zcoin but recently rebranded as Firo, experienced a 51% attack on January 18.

51% attack is a type of attack where more than 50% of the processing power in the network is captured so that transactions can be changed and reversed. After the 51% attack, the attack is converted into gain with a method called double spend. This type of attack seen on blockchains based on proof-of-work (PoW) is a significant threat, especially for small blockchains. Previously, chains such as Ethereum Classic, Horizen, Bitcoin Gold, Grin and Beam experienced 51% attacks.

After the attack, a new statement was made yesterday from the Firo team.

Accordingly, exchanges and stock exchange users suffered financial damage from the attack.

In the statement, it was stated that Binance’s loss was 906,771.4373 FIRO. It was emphasized that the figure corresponding to $ 4 million at current prices could change and Binance’s security team is still investigating the incident. It was recorded that another stock exchange Indodax had a loss of 82,741.37 FIRO with a value of 380 thousand dollars. In total, the loss of the two exchanges approached $ 4.5 million. The Firo team is working on solutions to cover the losses of the stock markets.

The statement also underlined that the attack took place during a period when most of the team were asleep.

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