BlackWallet hacker steals $400,000 worth of Stellar Lumens | finder.com

BlackWallet hacker steals $400,000 worth of Stellar Lumens

Peter Terlato 15 January 2018 NEWS

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.

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.

Stay up-to-date with the latest cryptocurrency news and learn more about digital currencies using our guide.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Go to site