applancer Advertise

Anonymous Hackers steal stellar Lumens worth $400,000 from Blackwallet

Jan 17, 2018 Posted /  7239 Views

Anonymous Hackers steal stellar Lumens worth  $400,000  from Blackwallet

About 669,920  Stellar Lumens Stolen in the Heist

Anonymous hackers (or hacker) illicitly gained accessed to the DNS server for the wallet provider, a web-based wallet app for the Stellar Lumen cryptocurrency (XLM). The hacker(s) stole over $400,000 from users of the stellar Lumen Blackwallet.

It all started on a frenzy late saturday afternoon on the UTC timezone on 13 January when the attackers hijacked the DNS entry of the stellar lumen wallet provider blackwallet and redirected it to their own servers. Kevin Beaumont, a security researcher revealed that the DNS hijacking of blackwallet injected a code snippet that automatically pushes any lumen balance in user accounts more than 20 lumens to the hackers accounts. Mr. Beaumont analysed the code by the blackwallet team could gain access to the site and take it down to avoid further damages.

Bleeping computers, a news aggregation site reported that this address was the destination of the stolen lumens before the funds were later moved to a Bittrex wallet address. The founder of the blackwallet platform is said to be in talks with Bittrex to block the addresses where the funds were deposited in an attempt to retrieve the stolen funds.

Blackwallet Said to have Warn it’s users of the attack before it happened

Blackwallet and other XLM owners is said to have tried to warn their users of the speculated attack on it’s wallet via alerts on Reddit, Twitter, GitHub, stella community and GalcticTalk forums. However the warning messages seemed not to have done much as users continued to log into their accounts and witness their funds mysteriously varnish from their wallets.

In his Reddit post, the Blackwallet’s creator said he successfully disabled his hosting account and the websites for the meantime. The developer who goes by the alias of Orbit84, said he was sincerely sorry about the event and hope that they would retrieved the stolen funds. He further hinted that he was in talks with his hosting services to obtain as much information about the hacker as possible to process what the information would lead to. He advised blackwallet users to move their funds to a new wallet incase they log in to blackwallet.

Hackers started laundering stolen funds to hide hide all their electronic footprints

A few hours ago it was noticed that the attackers started moving funds from the XLM account to Bittrex, a cryptocurrency exchange, where they are expected to convert the proceeds of the heist into another cryptocurrency to hide their electronic footprints.

It is still unknown where Bittrex policies would allow Blackwallet to gain access to the funds which is legitimately in it’s custody without affecting its reputation. But for the meantime the blackwallet teams are pleading with bittrex to freeze the wallets where the funds are stored

According coinmarketcap data, stellar Lumen ranks currently at number eight as the world’s most popular cryptocurrency and its rating is expected to improve in the coming years. This is not the first time blackwallet is suffering the consequences of a successful hack as the platform was also hacked around july 2017 although detailed information about the hack remained concealed.

Other wallets services who suffered DNS attacks include etherdelta, classic Ether and the etherparty ICO website.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

For more details on how you can submit an opinion or any news , view our Editorial Policy or email [email protected].

Tags: Blackwallet Anonymous Hackers

Hottest Blockchain Newsletter

For updates and exclusive offers, enter your e-mail below.