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Update: 28th June 2016 12:52 GMT

A soft fork to ‘blacklist’ the stolen Ether is looking increasingly likely. On June 30th block 1,800,000 is expected to be mined, and if at this point enough ‘votes’ are in favor of the soft fork, the stolen funds will be made forever unusable.

This process has received a lot more backing from the community, as it avoids a controversial hard fork that might cause other issues for the network.

The voting continues, please use the two links below to see an overview of the current preferences of miners.

Update: 20th June 2016 13:37 GMT

You can follow voting on the Ethereum softfork proposal for both Ethermine and Ethpool here:
Ethermine.org Votes
Ethpool.org Votes

Update: 17th June 2016 12:09 GMT
Stephan Tual – Slock.it

In summary, a hardfork will retrieve all stolen funds from the attacker. If you have purchased DAO tokens, you will be transferred to a smart contract where you can only retrieve funds. Since no money in the DAO was ever spent, nothing was lost.

On June 17th 2016 a vulnerability in the DAO was found and a large amount of ETH was siphoned off to the address of a presumed hacker. As of 11:10 GMT on June 17th 2016 the total amount taken stands at roughly 2.6 million Ether.

Developers are currently considering several options to secure and restore the DAO; one such proposal suggests hard forking the protocol to ‘lock-out’ all stolen funds. However, this has highlighted controversy – should the mistakes of a contract running on Ethereum really have such a massive influence over the Ethereum network as a whole.

Temporary measures have already gone into place, including a spam attack on the current DAO contract to block DAO transfers passing through.

Note: the vulnerability lies entirely with the DAO, Ethereum remains secure.

For more information please join the Slack channel at https://thedao.slack.com/ or visit the reddit.com/r/ethereum subreddit.

The price of Ether has subsequently crashed by 25% from its all-time high of over $21 to $15, however the price has shown signs of recovery.

Nick was introduced to Bitcoin in 2011 while studying for a degree in economics and quickly spotted an opportunity for the cryptocurrency's use in online poker. Since then, the space has expanded beyond his expectations and in January 2016 he dedicated more time towards studying Ethereum and other blockchains. Nick is currently the sole author of this blog and writes on a range of topics from the technical to the financial. He also developed the Ethereum price tracker.