Hacker steals $200,000 from EOS Gaming App

Hacker steals $200,000 from EOS Gaming App

EOS is a company that specializes in applications for gaming systems using dApps (decentralized applications). The gaming systems offer a variety of different games that gamers play and bet on using blockchain technology. Experts have said blockchain technology is safer to use than traditional gaming applications. The ledger records all the transactions. However, it is not safe from hackers. Recently, hackers broke into EOS’ system and took $200,000 from the bankroll. At first, the company said the theft was minor. Now, however, it has classified it as a major theft.

Blockchain Technology

Gaming with BlockchainSome people consider blockchain technology to be the wave of the future with regard to transactions online. Blockchain is not like traditional technology, which acts as a gatekeeper. It has no gatekeeper. It does have an enhanced surveillance system, however. In blockchain, money-paying or money-giving ledgers are all public. That means it records every transaction, including deposits and withdrawals. Blockchain that uses digital technology is in the process of revolutionizing the financial industry. Researchers believe, at some point, people will pay for everything using digital currency. Cards, checks, and cash will become obsolete.

EOS Gaming Company

EOS Gaming Company

EOS is a gaming company that recently launched. It operates as a casino but it places all transactions on the blockchain ledger. Players can play craps, blackjack, roulette, baccarat, pai gow poker, and slot machines (both traditional and progressive). The company initially launched dice and slots on Ethereum’s site but decided the site could not handle all the traffic. It has since relaunched on its own site. Like other blockchain companies, EOS will allow players to buy stock in the company. And, as the company expands, players will have the opportunity to make dividends.

The Hacker

While it is difficult to hack into blockchain technology, it is not impossible. Recently, hackers got into the EOS system via EOSBet. They lost $200,000 before someone (who was not an employee) discovered the hack. The dApp was taken offline so company employees could conduct an investigation. The investigation revealed how the hackers got into the wallet. They got into the blockchain using a fake hashtag. They had it transfer the money out of the wallet by tricking the wallet function.

The company did not spot the hack. This led to speculation about how much money was actually in the wallet to begin with. Instead, a Redditor (who uses the Reddit application) spotted the hack. The person wrote about it on the blogging and question website. Since news of the hack broke, the company has admitted there have been several smaller hacks as well. These, too, exploited the system without being discovered.

EOS investigators found that the scammers used cryptocurrency scam bots. These scam bots invaded the blockchain using an account name very similar to the EOSBet wallet. It appears the hackers are in Asia, or they chose to say they are from China to disguise their actions. In addition, the hackers send messages to the blockchain threatening criminal liability. They use a hashtag that opens up EOSBet for further hacking. The actual hashtag used by the company, when compared with the one the scammers use, is off by two letters. These letters should be numbers.

It’s unclear if a breach earlier in the week is by the same hackers who performed the most recent one. A gambler managed to make off with $600,000 from EOSBet over the last few days. The person used a winner’s platform hashtag to double his or her money. When taken in conjunction with the earlier hack, it would appear that the total amount lost is nearly a million dollars.

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Richard Holmes was born in Tampa, Florida and studied computer science at Pensacola Christian College in Pensacola Florida. A devout Baptist, volunteer Sunday School teacher and online gaming fan, Richard works as a part-time systems administrator at Baptist Hospital and part-time professional blogger specializing in statistics, probability and computer science issues. He is an ardent believer in the future of artificial intelligence as a tool for transforming human society for the better, particularly in the area of health care and modern medicine. A chess player, and competitive online gamer Richard actively participates on online gaming tournaments in his free time.