More than $300m of cryptocurrency has been lost after a series of bugs in a popular digital wallet service led one curious developer to accidentally take control of and then lock up the funds.
Unlike most cryptocurrency hacks, however, the money wasn’t deliberately taken: it was effectively destroyed by accident. The lost money was in the form of Ether, the tradable currency that fuels the Ethereum distributed app platform, and was kept in digital multi-signature wallets built by a developer called Parity. These wallets require more than one user to enter their key before funds can be transferred.
Over the weekend I got into a conversation about ‘poisoning the well’ of cryptocurrencies like Ethereum and Bitcoin. This just validates my point. Anyone can manipulate and destroy one man’s fortune and raise the overall price for everyone else. I still maintain the large governments and anarchist organizations are waiting to collapse the digital economy with the push of the ‘Enter’ key.