As noted here, parity multisig wallets deployed after 20th July are affected through a vulnerability in the Parity Wallet library contract.
It was possible to turn the Parity Wallet library contract into a regular multi-sig wallet and become an owner of it by calling the initWallet function. It would seem that issue was triggered accidentally 6th Nov 2017 02:33:47 PM +UTC and subsequently a user suicided the library-turned-into-wallet, wiping out the library code which in turn rendered all multi-sig contracts unusable since their logic (any state-modifying function) was inside the library.
This froze funds in all Parity multi-sig wallets deployed after 20 July. The funds in these multisig wallets can not be moved.
This is second time in very short period of time that parity multisig wallets are severely affected.
The situation is currently being analysed by Parity team & I'll update the post as soon as there is any update.
This calls for a discussion:
- Is ledger nano S a better wallet than Parity multisig wallets?
- Does this call for a hard fork?