12/5/2017 British cryptocurrency Electroneum hit by cyber attack after raising 30m

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British cryptocurrencyElectroneum hit by cyber attack after raising 30m

Electroneum is one of hundreds of new cryptocurrencies CREDIT: EPA

By Matthew Field
6 NOVEMBER 2017 5:55PM

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12/5/2017 British cryptocurrency Electroneum hit by cyber attack after raising 30m

A UK cryptocurrency startup that raised $40m (30m) has been hit by a cyber attack that has shut investors out of their accounts for
several days.

Electroneum, which offers adigital currency that can be mined using smartphones, was due to launch its website and mobile app last
Thursday, having crowdfunded millions of dollars in bitcoin and etherfollowing a so-called "initial coin offering", or ICO
(http://www.telegraph.co.uk/technology/2017/07/23/initial-coin-offerings-techs-next-bubble/).

The Maidstone-based company's websitecame under a distributed denial of service (http://www.telegraph.co.uk/technology/0/what-is-a-ddos-attack-

and-could-my-computer-be-a-weapon/)(DDoS) cyber attack last week, forcing it to delay the full launch of its mobile mining app.

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DDoS attacks involve a network ofcompromised computers, known as a "botnet", which ood a website's serversleaving legitimate trafc
unable to get through and making the website vulnerable to hacking.

Electroneum, which claims 140,000 people hold its tokens, has locked down the accounts while it tries to bring its network online safely.

Electroneum's website after the attack CREDIT: ELECTRONEUM

The startup created the Electroneum cryptocurrency, with many users buying the token in the hope it will spike in value following
therise of bitcoin (http://www.telegraph.co.uk/technology/0/can-buy-bitcoin-uk/), which is now worth more than $7,000 per coin.

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12/5/2017 British cryptocurrency Electroneum hit by cyber attack after raising 30m

Electroneum made headlines last month after it received the backing of football manager Harry Redknapp
(http://www.telegraph.co.uk/technology/2017/10/13/bitcoin-price-soars-record-high-harry-redknapp-joins-digital/)ahead of the launch, who claimed he was
"proper excited" about the crypto-startup.

Electroneumsays its platform will allow "the average guy" to mine cryptocurrency using technology similar to the computer programs
that allows tokens like bitcoin or etherto be generated, but whichnormally takes signicant processing power.

One user locked out of their account complained on Facebook: "The question has to be asked... why didn't they do all this testing before
the launch?"

Another said: "With $40m in the bank you should be able to hire and sort this quicker. This should all have been done before
applying/listing on the exchange."

electroneum
@electroneum

When one small step...becomes one giant leap #Electroneum

#Cryptocurrency #Launching #Blockchain
7:26 PM - Oct 31, 2017

60 197 377

A statement on Electroneum's website said: "We are very sorry for the continued delay, and understand your frustration. We are working
as hard as is humanly possible to complete the works and get everyone live so we can get on with the next (exciting) stage of the evolution
of Electroneum."

The Financial Conduct Authority has previously said that there is no investor protection for most ICOs, which operate like unregulated
crowdfunding sales, warning people should "beprepared to lose [their] entire stake".

electroneum
@electroneum

Sunday 18.41 Coding as fast as we can. Working to get this live

all weekend. Thanks for patience, Hope for good news this
evening!
9:53 PM - Nov 5, 2017

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12/5/2017 British cryptocurrency Electroneum hit by cyber attack after raising 30m
200 272 868

New cryptocurrencies have been regular targets for cyber criminals. A similar launch this summer saw one ICO lose$7m of digital
currency (http://www.telegraph.co.uk/technology/2017/10/25/bitcoin-gold-cyber-attack-mars-launch-rival-cryptocurrency/)to hackers within minutes of
launching.

Interest in ICOs (http://www.telegraph.co.uk/technology/2017/07/23/initial-coin-offerings-techs-next-bubble/) has peaked as the price of bitcoin spiked to

more than $7,000 last week as investors and speculators hunt for the next big cryptocurrency, raising fears of a bubble
(http://www.telegraph.co.uk/business/2017/11/05/bitcoin-path-every-bubble-history/).

Although many ICOs have lost signicant chunks of their value as users cash-in their tokens, the crowdfunding method has generated
millions in startup funds, even before they launch a product.

Richard Ells, Electroneum's chief executive, has not responded to requests for comment.

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