Vinex Double Spend Attack

To the Bitgrin Community,

What happened?

On June 19, a malicious party sent 13,400 coins to Vinex while shadow mining in the background. He proceeded to sell these coins on Vinex for 0.16 BTC. He then sent the additional 13,400 coins to Vinex, profiting 0.32 and successfully completing a double spend attack.  

Why did the Double Spend Happen?

“Basically we have lower hashpower than Grin, but we were given the same confirmation # requirement as them(around 10). But, we need it to be around 700 at this hashrate.” - Pharazen, lead developer.  


What was done to remediate the situation(timeline of events):

  1. Vinex disabled all deposits/withdrawals/trading for XBG

  2. We opened a channel of communication with the Vinex team to address this issue

  3. After a discussion on what on what occurred and why, both parties settled on a solution

  4. Vinex team increased min. deposit confirmation # requirement, preventing similar occurrences from happening again in the future

  5. Trading and wallets reopened for XBG on Vinex


It important that we identify these sort of issues while the network is still small to prevent similar attacks from happening when the network is much larger and there is more at stake.

The Vinex team was very professional and responsive throughout the entire process and we’ve put the necessary measures in place to prevent this sort of attack from occurring again.

Have a great day everyone!

Cheers,

The Bitgrin Team


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This newsletter is curated by Crypto Gatsby, for the Bitgrin community.