Hackers steal $400,000 worth of Stellar Lumen in BlackWallet Theft

2128 Total Views

Hackers steal $400,000 worth of Stellar Lumen in BlackWallet Theft

An anonymous thief has stolen more than $400,000 in Stellar lumens after hacking the digital wallet provider BlackWallet.

According to cybersecurity researcher Kevin Beaumont, the attacker hijacked BlackWallet’s domain name system (DNS) server over the weekend, attaching a part of the code which transferred any deposits of 20 or more lumens into another wallet.

Bleeping Computer reported that the attacker hacked around 670,000 lumens, worth about $444,000 at press time.

Soon after stealing the lumens, the hackers began moving the funds out of the wallet they were being stored in. Just under 100 lumens was remaining in the wallet by 7:30 p.m. UTC on Monday.

A reddit user pretending to be Blackwallet’s creator said in a statement that his hosting provider account had been compromised, which led to the hack. He went on to say he had contacted his provider and asked for the site to be taken down.

Meanwhile, BlackWallet was inaccessible.

The site’s creator said a large amount of the stolen funds were sent to an account at the cryptocurrency exchange Bittrex. When he tried to contact the exchange, it is not yet revealed whether the Bittrex has frozen the stolen funds or not.

The creator said:

“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.”