Hackers hacked BlackWallet's DNS server and stole $ 400,000 in cryptocurrency

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Last weekend, unknown attackers compromised the BlackWallet DNS wallet (BlackWallet.co domain), which is used to work with the Stellar Lumen (XLM) cryptocurrency. The problem was noticed not only by service operators, but also by well-known information security specialist Kevin Beaumont.

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While the administration of the service regained control over the domain, warning users about what had happened through all possible channels (via Reddit, Twitter, GitHub, Stellar Community, and so on), the specialist studied the situation. According to Beaumont, the attackers were withdrawing more than 20 XLM from wallets and transferred to GBH4TZYZ4IRCPO44CBOLFUHULU2WGALXTAVESQA6432MBJMABBB4GIYI. In total, the criminals managed to steal 669,920 XLM, which at the current exchange rate is more than $ 400,000.

According to representatives of BlackWallet, the incident occurred due to the fact that a third party gained access to the account of the hosting provider of the service. While the details of the incident are not disclosed, an investigation is underway.

But unknown attackers are not wasting their time, they have already begun to get rid of the stolen funds: they are transferred to the Bittrex exchange and, apparently, are converted into other cryptocurrencies in order to obfuscate the traces.

The BlackWallet developers are trying by all means to attract the attention of Bittrex representatives and ask to block the attackers' account, but it seems that so far their appeals have not had an effect.

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Currently, users are advised to consider moving funds to other wallets through the Stellar account viewer.
 
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