An estimated $280 million worth of the cryptocurrency ethereum is currently locked up thanks to one person’s mistake.
BEAM Team 8 Nov, 2017
An unknown individual unintentionally locked up his/her newly-created digital wallets using Parity-- a famous Ethereum digital wallet issuer-- by erasing the code library needed to use those wallets, based on a critical security report published on Parity Technology's blog on Tuesday.
The freeze impacts all "multi-sig" wallets created on Parity after 20th July has been frozen.
Multi-sig wallets (also known as multiple signature) are specially favored among the crypto community given that it requires more than one party to acknowledge the transaction in order for any coins to get transferred. It acts as a protection over mischief employees who would flee with the cryptos for their benefit.
Because of this, it is equally a preferred method of storing cryptocurrencies collected from in Initial Coin Offerings, or ICOs.
Precisely what amount of coins that has frozen caused by the bug is not clear, although several blog sites have stated that Parity wallets compose of 20% of the whole Ethereum Network.