Ethereum woes continue as a popular decentralized gaming app on the blockchain collapsed. Smart contract researcher Philippe Castonguay published a detailed report revealing the vulnerabilities in the gambling dApp Fair Win. According to the report, as much as $8 million worth of ETH may have been stolen by the platform’s admins.
Researchers discovered a vulnerability that enabled almost anyone to steal all of a user’s deposit. They also found various bugs and typos in the coding of the contracts. Ethereum’s blockchain has been under scrutiny for a long time.
Earlier, founders of the network Vitalik Buterin and Joesph Lubin admitted that they knew that blockchain was never designed for scalability. This has attracted a lot of criticisms for the duo. Some from the crypto community accused the founders of deceiving investors as the original ICO documents clearly stated that building scalable dApps are possible on the blockchain.
ICO prospectus: “Build scalable apps on Ethereum.”
Mod: “Youre saying the concept of launching something that doesn’t scale then rebuilding it as something thats scalable was part of initial the plan.”
Lubin: “We knew it wasn’t going to be scalable for sure.”
Vitalik: *nods* pic.twitter.com/MBSFkQeugj
— grubles (@notgrubles) September 20, 2019
Philippe Castonguay and his team exposed the vulnerability on Fair Win Dapp on 26th Septemeber, and at the time, there was $8 million worth of ETH tokens stored in the smart contract. In the next two days, all the funds were withdrawn. The researchers believe that admins might have dispursed the coins dishonestly as they had total control over the withdrawals. According to the report, several users failed to withdraw their ETH before the dApp collapsed.