RChain cooperative hit by scam; tokens bought using counterfeit money

Security • April 26, 2019, 10:39AM EDT
The Block

Blockchain firm RChain informed its members this week that it had suffered an attack in which it lost an undisclosed number of RHOC tokens, according to leaked Discord messages. 

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The announcement explained how scammers had "put counterfeit money into escrow while we sent them RHOC," with the OTC trade seemingly conducted through KuCoin exchange. A reddit thread further suggested that CEO Greg Meredith had overseen the trade and told members himself in a community briefing Wednesday that "somewhere along this process someone dropped the ball."

Management say they have alerted the U.S. authorities and the hacker's wallet has been blocked, meaning the stolen funds cannot be moved. This is the latest in a series of issues to have plagued the Cooperative, following The Block's report in December 2018 that its treasury was "functionally bankrupt."

About Author

Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.

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