Multi-Sig Wallets Are Frozen Accidentally
Parity is a client for interacting with the Ethereum blockchain. Parity helps end users to create wallets and storing funds like Ether (ETH) and ERC20 compliant tokens.
There is a feature Parity provides called multi-signature wallets. These wallets have the flexibility to set-up multiple private keys for accessing the funds. So all the associated keys are must for obtaining the funds. The multi-sig wallets are popular with escrow services.
How are funds locked?
A user, reportedly known as devops199, accidentally triggered a function on the parity client. Due to an unidentified bug, he stole the funds from multiple accounts. In a panic to return the unintentionally hijacked funds, he deleted the code. Over 300 million USD in terms of Ether are inaccessible.
Earlier 2017, a hacker theft 30 million USD through a bug in the parity wallet. The developers immediately dried up the wallets the attacker targeted and gave back the funds after fixing the issue on July 20.
But a bug had crept in without the knowledge of the developers. It caused the accident.
To check whether a wallet is affected or not, follow this link and enter your wallet address. Until the problem solved, refrain yourself from using the Parity client.
The developers are working to find an employable solution.
Chances of Hard Fork
A hard fork seems like a better fix. But getting the 51% consensus might be hard. Even if the consensus achieved, minority users can still opt for the old chain creating a new platform; the same case of Ethereum Classic.
Parity client bug roots to a smart contract that talks to Ethereum blockchain. The developers should handle the smart contracts with utmost care. Otherwise, the problems are boundless.
For the official statement and updates, you can follow this link.