Hackers stole smart home hub for millions of consumers, experts warn

A hacker stole $1.7bn in cryptocurrency last year from the Ethereum blockchain, a blockchain that has allowed millions of people to store their own wealth in the form of digital tokens. 

The hack, dubbed “DDoS”, affected about 5,000 wallets, which stored funds that were tied to the Ethereum cryptocurrency, according to data from cyber security firm FireEye. 

It was carried out on a server that was controlled by a Chinese company, according the data. 

FireEye said that in addition to the theft of the funds, the attack compromised the Ethereum network’s blockchain and stole some $1bn in Ether, or the cryptocurrency’s virtual currency.

The attack was “the largest attack against the Ethereum platform” according to FireEye, which said that it was a “significant breach of trust” and said that there were “several possible motives”.

FireEye described the theft as a “massive breach of confidence in the Ethereum community”, but added that it had not yet seen evidence of the attacker. 

“We are working closely with the victim to identify the likely perpetrators, and will be releasing further information as soon as we have more information to share,” the company said in a statement. 

Ethereum, which is used as a platform for cryptocurrencies, has attracted interest from some governments to be used as digital currency in a range of ways. 

In August, a Russian bank said it had received a tip-off about a suspected fraud on its network of ether, or ether tokens, worth about $2.3bn. 

However, it has since taken steps to protect its ether network, including a “zero-knowledge proof” protocol for the system that prevents the theft or modification of the ether network’s code.

The hack could have a significant impact on the development of smart home and automation systems. 

Smart home systems, which include smart thermostats and smart lighting systems, are among the largest users of Ethereum, with the company also backing many of the systems.

The Ethereum blockchain was designed to provide “smart contracts” that would allow the creation of digital assets that could be used in the smart home system, and also in the creation and management of smart thermoregises. 

Although the Ethereum ecosystem has grown in recent years, the recent hack has raised questions over how well it is secure. 

On Wednesday, the US Federal Reserve said that the use of Ethereum “will need to be regulated”.

“We have a lot of concerns about the use and development of Ethereum-based technologies and their impact on financial institutions, their impact in the financial system and their effect on our economy,” Federal Reserve Chairman Jerome Powell said.

“This is something that needs to be carefully considered.”

Ethereum and smart contracts are becoming increasingly popular among the financial services industry, with companies such as IBM, Intel, and Microsoft using the blockchain to build and manage their smart contracts.

The blockchain is a ledger of digital transactions that allows for the creation, recording, and exchange of digital data.