UK-based cryptocurrency startup Electroneum recently raised £30 million ($40 million USD) through its token sale. Just days later, the company was hit by a cyber attack that has locked investors out of their accounts.
Electroneum made headlines for launching a digital currency that can be mined with smartphones. The cryptocurrency was scheduled to launch on Thursday, November 2, along with mobile mining support. However, the company’s website experienced a distributed denial of service (DDoS) attack that forced it to delay the launch of the mobile mining app.
That app is already available from the Google Play Store – and has been for several weeks. Users downloaded the app with the expectation that mobile mining would be enabled on November 2. Based on reports online, some users were able to mine a small number of Electroneum tokens during the initial hours of the launch, but they haven’t been able to mine since.
Just days before the cyber attack, Electroneum had raised millions of pounds through its ICO. Electroneum claims 140,000 people purchased its tokens.
The company has locked users’ accounts while it tries to regain control of the situation.
Electroneum made headlines in the UK in October after receiving support from soccer manager Harry Redknapp, who stated that he was “proper excited” about Electroneum’s potential.
Many have kept a close eye on Electroneum based on its goals of returning mining to “the average guy”. However, this latest cyber attack has left some investors questioning the company’s preparedness.
“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,” said one angry Facebook user.
Meanwhile, Electroneum’s website posted an update stating that they’re “very sorry for the continued delay” and that they “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.”
In an image posted on Twitter, Electroneum showed their programming team working late into Sunday evening trying to resolve the problem. At 4am later that night, the company posted an update saying their whole team was still up and coding.
Richard Ells, Eletroneum’s chief executive, is not responding to requests for comment according to The Telegraph. Electroneum has not posted a social media update since 4am (UK time) on November 6.
Meanwhile, the Electroneum website describes its product as “the easiest cryptocurrency to manage” thanks to the company’s “unhackable offline wallets.”
We’ll keep you posted on the latest Electroneum news as this story continues to develop.