Hackers Plunder $400K Worth Stellar Lumen Crypto-Currency

Hackers by hijacking a DNS managed to withdraw Stellar Lumen coins valuing $400K out of wallets that received their hosting service on Blackwallet.co. The withdrawal was done devoid of the end-users' permission.

It's reported that on January 13 a Saturday, cyber thieves compromised the hosting server of BlackWallet then altered its settings so that a code was executed that without any user activity transmitted customer balances amounting to more than 20 Stellar Lumen (XLM) into one address that the cyber attackers controlled. At present, nearly 670K tokens have been lost due to the hack, possibly elucidating the 23% dive of XLM during the last two days.

Reddit displayed a poster asserting as from admin who stated BlackWallet was hijacked following somebody accessing his account on the hosting provider. He then expressed his sincere regrets of the incident and hoped the funds would be recovered. He was in a communication process with his hosting supplier for getting the maximum possible details regarding the hacker to do everything feasible about the funds' retrieval. Whenever an end-user fed his key onto blackwallet, he could possibly transfer his funds into one fresh wallet via utilizing the viewer of stellar A/C. But, BlackWallet served to be simply one account viewer with none of its keys saved on its hosting server, the admin explained.

One Reddit end-user identified as u/nudearping seems to have detected the hosting supplier that hosted BlackWallet in the form of 1&1. Should that be real, the incident shall be a repetition involving 1&1. During the month of August in 2017, hackers cajoled one representative of customer service at BlackWallet towards getting the original owner of the domain of Classic Ether Wallet to give up control. Cointelegraph.com posted this, January 16, 2018.

BlackWallet representative's hack at that time resulted in enormous losses of digital cash along with sensitive info about end-users. Essentially, there's little regulation of crypto-currencies, with hardly any assurance about wallets' security and development. Thus, it's very important that suppliers of virtual currency wallets make the life-cycle of their software creation secure, while get intermediate specialists towards substantiating that it's safe from ordinary vulnerabilities.

» SPAMfighter News - 1/22/2018