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A blog post by Ethereum founder Vitalik Buterin announced on Friday that an attack had been found and exploited in the DAO, and that the attacker was in the process of draining $50M of ether contained in the DAO into a "child DAO". A month ago DAO raised a record $150M in a crowdfunding initiative.
The attack spirited away funds from DAO to another account, apparently by exploiting a loophole in its code. The Ethereum Foundation said on its website that the hacker’s account, which currently holds 3.6 million ether, was identified and effectively frozen. The foundation said that through a coding process calling forking, the transactions that fed into that wallet will be neutralized, and a “hard fork” will restore the old account balances, which will then be returned to the original holders. “The DAO’s journey is over but all funds are safe,” Stephan Tual, the founder of Slock.It, the group that created DAO, told The Wall Street Journal via email. “All stolen funds will be retrieved from the attacker.”
