There's a lot of hair-pulling among Ethereum alt-coin hoarders today – after a programming blunder in Parity's wallet software let one person bin $280m of the digital currency belonging to scores of strangers, probably permanently.
Parity, which was set up by Ethereum core developer Gavin Woods, admitted today that a user calling themselves devops199 had "accidentally" triggered a bug in its multi-signature wallets that hold Ethereum coins. As a result, wallets created after July 20 are now locked down and inaccessible, quite possibly permanently, thus nuking $90m of Woods' own savings.
Multi-signature wallets mean more than one person has to sign off on a transaction before funds are moved, and are popular with companies and investment groups looking to protect their assets. Unfortunately, Parity's technology is seriously flawed: in July a hacker managed to exploit errors in the multi-signature code to steal about $30m in Ethereum.Quite frankly, it sounds like their code is a mess. Given the high visibility of the cryptocurrency market, there is undoubtably huge pressure to ship software on time. This will not improve code quality.
My prediction: this isn't the last time we'll see something like this.