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Ethereum Classic Labs opposed platforms for renting hashing power

Ethereum Classic Labs opposed platforms for renting hashing power

Ethereum Classic Labs hopes to increase protection against 51% attacks on the ETC blockchain by regulating platforms that provide the ability to lease hashing power.

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Ethereum Classic Labs in a blog post on Medium, the latest 51% attacks on the Ethereum Classic network were made using hashing power leased on NiceHash. This platform is notorious for losing 4,700 BTC that was stolen
in late 2017, and the founder of NiceHash is charged
The FBI in creating a forum for cybercriminals. However, Nicehash continues to work.

As noted by Ethereum Classic Labs, in addition to ongoing technical updates and ongoing investigation of attacks, ETC Labs has launched a new initiative to engage law enforcement agencies and international regulators to ensure accountability and transparency of hash power rental services.

“Many exchanges and other cryptocurrency service operators have implemented reliable KYC/AML checks. However, platforms that rent out hash power, such as NiceHash, often remain unregulated, which can contribute to money laundering and other illegal activities on these platforms. After passing the minimum KYC/AML checks or cryptocurrency addresses, the platform’s clients can rent a hashrate to launder cryptocurrency using newly mined coins with no history. Given how important hashrate is for the security of PoW-based blockchains, this is a serious vulnerability for the blockchain industry as a whole,” States Ethereum Classic Labs.

According to the blog post, ETC Labs and its partners will take all the steps necessary to secure the Ethereum Classic network. This includes lawsuits against those who carry out or facilitate malicious attacks. ETC Labs is working with authorities in the relevant jurisdictions and will soon share more information about the progress of this work.

Recall that last month, Ethereum Classic Labs introduced
the plan to protect the network from attacks of 51%, and earlier the organization attracted
lawyers and analysts to track down hackers. At the beginning of last year, experts noted that the liquidity of the mining capacity rental market is growing, and at the same time, 51% attacks using leased hashing power are becoming increasingly clear.