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Hacker escapes justice with over $400K USD in BlackWallet theft

An unidentified hacker has reportedly succeeded in stealing over $400K USD in Stellar Lumens after attacking wallet provider BlackWallet.

Written by Bryan Smith Published on

An unidentified hacker has reportedly succeeded in stealing over $400K USD in Stellar Lumens after attacking wallet provider BlackWallet.

Over $400,000 USD in Stellar Lumens have been plundered today, as a new hack on popular digital wallet provider BlackWallet saw a sophisticated attack that has seen over 670,000 Lumens depart the service.

According to cybersecurity researcher Kevin Beaumont, the attacker succeeded in hijacking BlackWallet’s domain name system server, and added code that transferred any deposit upwards of 20 Lumens into another wallet.

Read: Chinese Bitcoin exchange OKEx gets hacked, local police turn the other cheek

Shortly after accumulating some 670,000 Lumens, the hacker proceeded to move funds out of the redirected wallet the total was stored in them. At press time, just over 98 Lumens remain in the wallet.

In a statement issued on Reddit, BlackWallet’s creator, under the handle orbit84, described that the fault was due to a successful hack on BlackWallet’s hosting provider, and that subsequently the site had been taken offline to prevent the plunder of any further funds.

The statement continued to say “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.”

The stolen funds have reportedly been directed to a Bittrex wallet, where it remains to be seen if the exchange will proceed to freeze the account in question.

The news follows several other large-scale thefts which have occurred in the past twelve months; late last year, a hack led by an ‘external attacker’ has amounted to the theft of Tether tokens to the value of $30,950,010 USD.

Similarly, a hacking attempt on NiceHash – a popular cryptocurrency mining market –  resulted in the theft an estimated 4,000 bitcoins worth nearly $62 million USD.

On the international stage, North Korea has intensified its hacking attempts on international exchanges and wallet services as international sanctions mount.

We’ll update this story should BlackWallet provide further comment.

Read: Warren Buffet slams cryptocurrencies, quips ‘they will come to a bad ending’

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Written by

South African technology journalist, podcaster, photographer and filmmaker. Hodling - BTC, NEO, ETH.@bryansmithsa

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