Hash brokerage giant NiceHash has denied enabling users to carry out a 51% attack on Ethereum Classic’s blockchain.
According to an official statement made by the company, NiceHash refutes the notion that bad actors are renting the platform’s hashing services to target vulnerable blockchain networks.
The statement came in response to a Medium post published by Ethereum Classic Labs accusing the hash brokerage firm of being complicit in a 51% attack that occurred at the end of July.
The post reads,
On July 30 and August 1, 2020, the Ethereum Classic Network suffered a 51% attack with hash rate purchased from NiceHash; a company previously known for inexplicably losing $62M in Bitcoin, and whose co-founder is pending extradition to the United States for charges of fraud and racketeering after being convicted of similar offenses in Slovenia.
NiceHash responded to the allegations by saying it does not support malicious attacks on blockchain networks and takes steps to prevent market disruptions. However, the brokerage said it was possible for its hash-power to be “abused” by an attacker’s pool.
The firm also argued its service provided smaller projects access to hashing power in order to better safeguard their blockchains.
The statement reads,
NiceHash is giving everyone with smaller and less secure blockchain projects a chance to make them safer. Such projects should be renting hash-power and thus raising the hashrate of their blockchain. It is always a good practice to have a portion of funds allocated for security.
NiceHash continued, saying the industry of crypto could not “impose limitations” while simultaneously building a truly decentralized world.
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