Another cryptocurrency service provider was hacked, costing Stellar users hundreds of thousands of dollars in losses this time. DNS hackers hijacked the blackwallet server, diverted some of the traffic and made it away with 669,920 XLM.
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Stellar Wallet Blackwallet Compromised
The team behind Blackwallet, a Stellar Lumen (XLM) web wallet, has confirmed reports that the service was compromised on Saturday and that hackers took 669,920 lumens, which was worth about $ 400,000 at the time. The stolen loot has since been transferred to Bittrex, and Blackwallet attempted to contact the exchange for help with the recovery.
The creator of Blackwallet commented, “I am truly sorry and hope we get the money back. I’m in talks with my hosting provider to get as much information as possible about the hacker and see what can be done with it. If you’ve ever entered your key on Blackwallet, you may want to move your funds to a new wallet using the Stellar Account Viewer. Please note, however, that Blackwallet was only an account viewer and no keys were stored on the server! “
The Blackwallet website is now offline
DNS hacks on the rise
Blackwallet has been hit by a type of attack called DNS hijacking, in which hackers redirect the Domain Name System to point to servers they control rather than the affected server. “Blackwallet’s DNA hijack injected code, if you had over 20 lumens, it pushed you into another wallet,” explained cybersecurity researcher Kevin Beaumont.
This is not the first time such a method has been used to scam cryptocurrency users, and probably not the last time copycats see how effective it is. Just a month ago, DNS hackers stole over $ 270,000 in Ethereum and tokens from Etherdelta exchange users. The attackers have been linked to this Ethereum address, which now holds nearly $ 6 million in ETH.
Which cryptocurrency wallets can be trusted to protect users’ funds? Do share your thoughts in the comments section below!
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Tags in this story
Bittrex, Cryptocurrency Wallet, Cyber Attack, Cyber Security, DNS, Hack, Hacker, Hacker, N-Featured, Stellar, Web Wallet, XLM