In a statement issued on Tuesday, the company confirmed that “the Ethereum blockchain has experienced a distributed denial-of-service attack” that “exceeded 100 times” the average in the last year.
The incident has “caused significant disruptions to the Ethereum network, and the company has implemented a number of measures to ensure it continues to function effectively and safely,” it added.
“We are working with all parties affected to address the issue,” the statement continued.
“We will provide further updates as they become available.”
The statement comes after the Ethereum Foundation, a non-profit organisation, posted a report that claimed the attack was a result of a botnet attack, and said the hack could affect about 80 percent of the network’s processing power.
The attack, which took place on August 23, is being investigated by the Bitcoin Foundation, and according to the report, the botnet network used to carry out the attack, called “Sasha”, had been identified as a member of a criminal group.
Sasha and his gang also took credit for a recent hack of several companies in the financial services sector.
The Foundation’s report said that the botnets used in the attack are linked to a bot called “NEO” which is responsible for most of the attacks in the bot network.
The report further said that “Semyon” – who goes by the handle of “Erik” in the report – is also responsible for a number attacks on the Ethereum blockchain and Ethereum-based wallets.
In August, the Foundation announced that it was investigating a new attack which it said was the result of the group behind the attacks.
In the report released on Tuesday morning, the report said:”This group of malicious actors used the Ethereum platform to target and steal the private keys and addresses of many large companies and their respective customers, and to steal the network from them.”
“The attacks were targeted at the Ethereum protocol, and they were aimed at Ethereum nodes,” the report stated.
“A number of these attacks were successful, but others did not.
The number of Ethereum nodes that were affected by the attacks was around 30 percent.””
In a bid to prevent the attack from continuing, we have implemented several measures, including the deployment of the new Smart Contract Network (SCN) and a security team, to protect our users and companies from further attacks,” the Foundation wrote.”
Semyons goal was to gain control of the system and steal private keys, which he then used to commit fraud.”
In a statement, the Bitcoin Blockchain said it had implemented a new security feature for the Ethereum Blockchain.
“In response to the recent attack, we are introducing the Smart Contract System (SCS) that allows the Ethereum smart contract to run independently of the blockchain, and prevents the attacker from gaining control over the network,” the company said.
The Ethereum Foundation’s investigation was prompted by a post on Reddit in which a user posted a screenshot of a Bitcoin transaction that he said was created on August 22.”
It is a new and innovative solution to the problem, and we expect it to be deployed across all the major Ethereum Blockchain platforms by the end of the year.”
The Ethereum Foundation’s investigation was prompted by a post on Reddit in which a user posted a screenshot of a Bitcoin transaction that he said was created on August 22.
In a subsequent thread on Reddit, the user who made the post – known only as “thekingdomofbitcoin” – said he had recently been involved in a similar attack on the blockchain network that took place in November.
“The attacker managed to gain more than 2,500,000 Ether and Bitcoin, as well as nearly 1.5 million Ethereum Classic tokens,” he wrote.
“This attack is not new to Ethereum, but I thought it would be interesting to show what happened in this case.”
The attack was eventually stopped, and in November the Ethereum project announced it would add a new feature to the platform to allow users to block attacks on their network.
In December, the Ethereum development team also announced it was launching an “active mitigation” tool called “Blockchain Firewall”, which will automatically block malicious scripts that are created on the network.