OKEx May Delist Ethereum Classic If It Doesn't Upgrade Its Security

ETC is facing delisting from OKEx in the wake of a 51% attack that cost the exchange $5.6 million.

On July 31, the attackers exchanged their ZEC holdings for 807,260 ETC and withdrew it from the exchange.

On the same day, the attackers began creating a "Shadow chain" using their newly acquired hashrate.

At this point, the shadow chain was identical to the main ETC chain, but was unknown to the rest of the community.

Then they deposited the ETC on OKEx, while simultaneously moving the same ETC on their shadow chain to wallet addresses that they controlled - effectively double spending the coins.

They traded their newly deposited ETC for ZEC on OKEx and withdrew the ZEC from the exchange.

"After what appeared to be inefficient communication with other participants in the larger crypto community - including exchanges like OKEx, wallets and ETC miners - the ETC community at this point made the decision to move to mining the now-broadcasted shadow chain, given that it was longer than the original mainnet."

It has since temporarily suspended all ETC deposit and withdrawal activity, and plans to extend confirmation times for transactions on the troubled chain.

"The exchange will consider delisting ETC, pending the results of the Ethereum Classic community's work to improve the security of its chain."

At an ETC community meeting yesterday, a fiery debate ensued over Charles Hoskinson's proposal for a decentralized treasury.