— In an Unprecedented Move in the Blockchain Space, ETC Labs Initiates both a Technical and Legal Response to Recent Ethereum Classic Attacks —
SAN FRANCISCO–(BUSINESS WIRE)–Ethereum Classic Labs (ETC Labs), the core development and accelerator organization for the Ethereum Classic (ETC) blockchain, today announced that in addition to pursuing technical solutions, it has retained cross-border disputes and investigations firm Kobre & Kim (www.kobrekim.com) to pursue legal remedies, and CipherTrace (www.ciphertrace.com) to work with authorities to investigate and pursue criminal charges against the perpetrators and related parties of recent attacks on the Ethereum Classic blockchain.
“We’ve engaged Kobre & Kim and CipherTrace to assist in the investigation and pursuit of criminal charges against the perpetrators of the recent attacks on ETC,” said Terry Culver, CEO of ETC Labs. “Together we will cooperate with stakeholders and agencies in the United States and wherever else the investigation leads to analyze the transactions and to identify the responsible parties with the knowledge and motive to carry out these attacks. We want to ensure that there are severe consequences for manipulating a public blockchain to steal. We are determined to protect the integrity of the ecosystem.”
“A regrettable side effect of the blockchain revolution has been a rise in the number of bad actors who seek to exploit public blockchains for unlawful ends,” said Benjamin Sauter of Kobre & Kim LLP, who was also one of the first lawyers to freeze and recover misappropriated digital currency on a fraud victim’s behalf. “However, there exist numerous legal avenues that victims can take to restore justice swiftly and effectively. We look forward to pursuing those avenues with ETC Labs.” In addition, ETC Labs is currently working with community, stakeholder, and technical teams to stabilize and strengthen the network.
“We are proud to help solve this pivotal case which represents more than a major theft because it is an attack on the integrity of a major blockchain. By tracing these stolen funds to virtual asset service providers, preventing these hackers from converting ill-gotten crypto to cash, we can not only preserve financial integrity but also hold these criminals accountable and help prevent future attacks,” said Dave Jevans, CEO of CipherTrace. “This case highlights the critical role blockchain analytics plays in maintaining the stability of the virtual asset economy.”
“Ethereum Classic is a growing and truly decentralized community. Bad actors have exploited that to hurt community members, honest miners, and exchanges,” continued Culver. “Nevertheless, ETC’s history shows that we’re resilient and will continue through this adversity. We continue to believe in ETC’s value, utility and enormous potential.”
About Ethereum Classic Labs (ETC Labs):
The mission of ETC Labs is to build relevant, accessible, and high-quality technology, and to use that technology to create communities of value in a mature and regulated ecosystem. The ultimate goal is to fulfill the promise of blockchain to improve people’s lives using Ethereum Classic, one of the world’s major public blockchains. The ETC Labs team of experts also fosters partnerships with organizations and institutions in order to address fundamental challenges in developing and deploying this innovative technology. We fulfill our mission in three ways: ETC Labs Accelerate, which invests in up to 25 blockchain projects annually that contribute to sustaining a robust ecosystem; strategic investments in innovative projects focused on economic and social development; and the ETC Core team of experts and developers who maintain the Ethereum Classic blockchain and build key applications, solutions, and tools. For more information, visit www.etclabs.org.
About Kobre and Kim:
Kobre & Kim is an Am Law 200 law firm focused on cross-border disputes and investigations. The firm’s collection of former federal prosecutors and experienced litigators focus on cutting-edge financial products and services disputes, including all manners of digital-currency disputes. The firm has deep experience devising effective fraud-related global asset recovery strategies including freezing, tracing and recovering misappropriated funds. Kobre & Kim has had repeated successes freezing assets, including digital assets such as cryptocurrency, through both judicial and non-judicial means to repatriate funds to victims. Kobre & Kim does not have a transactional practice or ongoing institutional relationships in the digital currency industry, and thereby maintains its ability to serve as a zealous and independent advocate in disputes involving the U.S. government or virtually any private litigant. For more information, visit www.kobrekim.com.
CipherTrace, leading cryptocurrency intelligence company, protects financial institutions from crypto laundering risk and is helping to grow the crypto economy by making virtual assets trusted by governments and safe for mass adoption. CipherTrace delivers the world’s most comprehensive cryptocurrency intelligence to detect money laundering, inform law enforcement investigations, and enable regulatory supervision. CipherTrace founders are dedicated to protecting consumer privacy, while defending against illicit finance. Deep expertise in cybersecurity, eCrime, payments, banking, encryption, and virtual currencies form the foundation for CipherTrace’s commercial offerings. For more information, visit www.CipherTrace.com or follow us on Twitter @CipherTrace.