Crypto Wallet Company Faces More Problems After July Hack
- Parity Technologies says some users had ether funds frozen
- The company hasn’t disclosed how much ether is locked up
In July, one cryptocurrency company’s coding error helped hackers steal $30 million of the world’s second most valuable digital coin. Now, that company is facing more security problems.
Parity Technologies Ltd., a London-based startup that makes software for so-called crypto wallets, issued a "critical" security alert Tuesday after certain users had funds frozen. The company said in a statement that it fixed the vulnerability that led to the July hack, but failed to catch another weakness that allows users to rewrite code and take ownership of wallets that don’t belong to them. Some users are unable to move funds out of their wallets because important code was deleted. It’s unclear how much ether was locked up and who tampered with the code.