BlackWallet hacker steals $400,000 worth of Stellar Lumens
Hackers infiltrated the DNS server of the digital wallet, removing almost 670,000 Stellar Lumens.
A hacker has reportedly stolen more than $400,000 worth of Stellar Lumens from users BlackWallet accounts.
The attack, which allegedly took place on the afternoon of Saturday January 13, was first reported by the Bleeping Computer. An unknown hacker (or hackers) were said to have infiltrated the DNS server of digital application BlackWallet, redirecting systems to a bogus server and removing almost 670,000 Stellar Lumens.
Security researcher Kevin Beaumont took to Twitter on Saturday to report the fraudulent incident.
The DNS hijack of Blackwallet injected code, if you had over 20 Lumens it pushes them to a different wallet. pic.twitter.com/Eiwb8UR1Nn
— Kevin Beaumont (@GossiTheDog) January 14, 2018
At the time of publication, the value of the cryptocurrency stolen was worth approximately $415,000.
BlackWallet and some of its users issued warnings and alerts to customers via social media and community forums, urging them not to log into the wallet’s website or their digital wallet accounts. However, many users remained unaware and continued to log in to their accounts, which enabled the hackers to thieve stored funds.
The supposed creator of BlackWallet published a lengthy post on Reddit over the weekend, apologizing for and explaining the hack and said that he hopes that the stolen cryptocurrency can eventually be returned.
“Blackwallet was compromised today, after someone accessed my hosting provider account,” the post said.
I’ve contacted both SDF and Bittrex to ask them to block the bittrex’s account of the hacker.”
Although “no keys were stored on the server”, the post suggested that if users had ever entered their keys on BlackWallet, they may want to move funds to a new, secure wallet using the Stellar Account Viewer.
Bittrex is a US-based digital currency exchange designed to process and execute transaction orders. Given the anonymity associated with virtual currencies and their exchanges, hackers can often hide their trails with ease.
Stellar Lumens shot into the new year with a price explosion from about $0.20 per coin to $0.60 in just days.
A number of central banks have criticized, issued warnings and debated how to regulate cryptocurrencies. This week, Bank Indonesia said virtual currencies weren’t a legitimate form of payment and forbid their use as such.