"White-hat" ETH hackers' "salvaged" funds - Frozen by Exchanges!
Mentions /u/jstolfi for clarifying the situation.
The Robin Hood Group
During the DAO disaster, a group of Ethereum supporters exploited the DAO reportedly to retrieve DAO funds.
On social media, they identified themselves as the Robin Hood Group or the White Hat Hackers.
What happened
ETH's Hard Fork nullified the DAO exploit on the ETH chain, but not on the ETC chain.
As a result, these hackers ended up with ETC taken from the ETC clone of the DAO.
They subsequently decided to move that ETC to "exchanges", which are believed to have included Poloniex and Kraken.
To their dismay, these exchanges decided to freeze their moved ETC.
Stated intentions behind "White Hat" hack
In response to community suspicion, one of their spokespersons /u/jbaylina wrote a post on Reddit to clarify their motives.
According to him:
They 'intended' to sell ETC for ETH to invest that ETH in Ethereum projects - based on "signals" of community support.
"signals were received from the greater community to distribute these ETC in ETH, to continue to support Ethereum projects"
They 'intended' to return part of that "salvaged" ETC to DAO investors in ETH, to relieve the community of the technical burden of managing their ETC themselves.
"Also, a large portion of the community does not have the technical ability to safely work both with ETC and ETH in the same address; therefore, returning part of salvaged ETC in ETH seemed to be the safest for all the parties involved."
They also added that the reason for their discretion in moving ETC, was to "avoid speculators taking advantage of the situation "
Their response to the ETC freeze
They are now petitioning exchanges to return their frozen ETC to designated multi-sig wallets.
If anything, it'll surely be interesting to see how this situation develops...
Bad day for VB and EF. Did you guys think no one was watching 7M ETC.
They always seem to get out of tricky situation, so I wonder how they'll handle this one...
Will be watching as well, I was going to hold my DAO after the first hack, then I read the fund was loosing more, so I sold at a loss to only later found out that it was a White Hat attack. Grrrrrrrrrrrrrrr
Ah yes, I remember the exploit announcements. Hope you didn't lose too much...
At the price I sold at the time it cost me a couple of BTC, but at the time was glad to get out.
Thats incredible play!
What they gonna do with it, destroy it?
Hard to say. Maybe try to refund it to DAO investors?
Lol. However you look at it their actions were shady and due to their close ties to ETH and the foundation it is even worse.
I think this also means that the black hat hacker DAO funds will also be frozen on the exchanges.
This is only good news for ETC and bad for ETH.
@thecryptofiend I would agree. Also, I guess it's nice of the exchanges to prevent an ETC dump...
Simply Great Information and Presentation