Digital wallet provider Blackwallet.co has been hacked and over $400k worth of XLM have been reported to have been stolen. The unidentified thief accessed the DNS of Blackwallet and changed the DNS settings to redirect to a fraudulent Blackwallet copy site. Users who deposited XLM into their wallets had their funds unknowingly transferred into to the hacker’s wallet. Blackwallet’s creator has stated the breach was due to their hosting provider account being compromised.
Fortunately due to the mechanics of the blockchain, we are able to see the trail the stolen Lumens left on the ledger. Apparently the stolen coins have been transferred to a wallet on popular crypto exchange Bittrex.
Hacker’s Wallet –
Hacker’s Bittrex Wallet –
The wallet was almost emptied out shortly after accumulating over 670,000 XLM. The majority of stolen funds sit in the hacker’s Bittrex wallet and Blackwallet is in the works of trying to retrieve the stolen funds.
Bittrex has been notified of the incident and have been asked to block the Bittrex account of the hacker. All users of Blackwallet have been advised not to log in til further notice. Users who have manually entered their private keys are urged to move their funds to a new wallet via the Stellar Account Viewer.
Blackwallet is only an account viewer so no private keys were stored on their servers.