Another Crypto Wallet Hack Sees Theft of $400,000 in Stellar Lumens

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Another Crypto Wallet Hack Sees Theft of $400,000 in Stellar Lumens

January 16, 2018 Exchanges News Security 0

ImportantIf you had an account on BlackWallet do not attempt to login. Instead, please check you’re account balance through the official Stellar Account Viewer, found here,

In a statement sent out today by its founder open source online Stellar wallet Black Wallet has claimed to have been hacked. Posting on Reddit, user orbit84 posted that a hacker gained access to his hosting provider account and changed the DNS settings to his own hosted version of BlackWallet. The attackers’ wallet, which the author posted a link to, appears to have amassed around $400,000 USD worth of cryptocurrency Stellar which has seen its market capitalization apply almost 3 fold over the past month.

Security research Kevin Beaumont was able to identify a piece of code which checked if a user had over 20 lumens and if they did moved them to a hardcoded wallet address. The attack comes after a series of social engineering attacks targeting the ever-growing crypto market.

Exchange EtherDelta suffered from a similar attack late last year caused by a DNS Hijacking. That attack was reported to be smaller with the attacker gaining just $250,000 worth of ether.

Much like the EtherDelta attack, the attacker appears to have been laundering money to a bittrex address which likely exchanged it for other tokens and further obscured the identity of the attacker.

How the Attack Unfolded

The attack appears to have been a phishing attack aimed at the blackwallet.co’s……..

Source: Another Crypto Wallet Hack Sees Theft of $400,000 in Stellar Lumens