Storing your cryptocurrency can be tricky but now comes a news of wallets being hacked. It gets more shocking from here. With the number of cryptocurrencies increasing in the market, the cyber hackers and criminals also upping their game. Blackwallet was hacked over the weekend and reported a virtual bank robbery.
It was reported that the group hijacked the server of the wallet and stole 669,920 XLM resulting in theft of $400,000 from customers’ wallet. The hacker used the domain name service and was able to inject code into wallets holding more than 20 Lumens and transfer them to other wallet. The altcoins then were move to another wallet and then moved to Bittrex, where it was converted into another digital currency.
XLM is the ninth largest cryptocurrency by market capacity. It’s infrastructure helps in cross-asset transfers of value, including payments.
A redditor posted on reddit claiming;
“I am the creator of Blackwallet. Blackwallet was compromised today, after someone accessed my hosting provider account. He then changed the dns settings to those of its fraudulent website (which was a copy of blackwallet). I’ve contacted both SDF and Bittrex to ask them to block the bittrex’s account of the hacker. I’ve contacted my hosting provider to disable my account and my websites.”
He apologised further promising a thorough investigation about infiltration;
“I am sincerely sorry about this and hope that we will get the funds back. I am in talks with my hosting provider to get as much information about the hacker and will see what can be done with it.”
With increasing crypto prices, the crimes has become more lucrative and can get elaborated too this year.