Hacker Steal $7 Million Worth of Ethereum.

The hottest trend in cryptocurrency was just dealt a serious blow.All it took was just 3 minutes and 'a simple trick' for a hacker to steal more than $7 Million worth of Ethereum in a recent blow to the crypto currency market.The heist happened after an Israeli blockchain technology startup project for the trading of Ether, called CoinDash, launched an Initial Coin Offering (ICO), allowing investors to pay with Ethereum and send funds to token sale's smart contact address.

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But the hack, which redirected $7 million worth of ether tokens, provides a reason for folks to be skeptical of the red-hot investment vehicle."Investors had been instructed to pay with ethereum and send funds to the token sale's smart contact address. In an email, CoinDash said it appeared that the sending address was hacked and changed to a fraudulent address," Bloomberg's Arnold wrote.Wall Street skeptics were quick to cite the rapid appreciation of cryptocurrencies like bitcoin and ether tokens as one reason why intial coin offerings are a bad concept. David Rutter, a Wall Street vet who heads R3CEV, a fintech startup, previously told Business Insider.

How the Hacker did this?CoinDash's ICO posted an Ethereum address on its website for investors to pay with Ethereum and send funds.However, within a few minutes of the launch, CoinDash warned that its website had been hacked and the sending address was replaced by a fraudulent address, asking people not to send Ethereum to the posted address.But it was too late, as the little change of address had already redirected cryptocurrencies sent by investors into the wallet of the hacker.

"It is unfortunate for us to announce that we have suffered a hacking attack during our Token Sale event," reads a Statement posted on the company's official website.

"During the attack, $7 Million was stolen by a currently unknown perpetrator. The CoinDash Token Sale secured $6.4 Million from our early contributors and whitelist participants, and we are grateful for your support and contribution."

CoinDash doesn't know who is responsible for the attack, and the worst part is that the company is still under attack.Investors are strongly advised to DO NOT send any Ether (ETH) to any address on the site, as CoinDash has terminated the Token Sale.

Some people even believe that the incident was not a hack, rather an insider's job. One user said: "Is there any proof that this was a hack. What if Coindash put an address in and then cried hacker to get away with free ETH?"

The CoinDash website is offline, at the time of publication, and the company is asking affected investors who sent their Ether to the wrong address to collect the CoinDash token (CDT) by submitting information to this link.

In a statement, CoinDash urged investors not to send any ether to any address, since "transactions sent to any fraudulent address after the website was shut down will not be compensated."The hacking of this ICO is reminiscent of last year when $50m was stolen in a similar fashion from a project called The DAO. As such, the event will likely again draw attention to possible security issues in ICO funding, amid their escalating popularity.