Hackers steal $400,000 virtual currency by Hijacking DNS Server of BlackWallet

On January 13, hackers attacked BlackWallet’s servers and stole Stellar Lumens (XLM), a virtual currency worth $400,000 (£290,000). The attackers hijacked the DNS entry of the BlackWallet.co domain and redirected it to their own server.

According to Bleeping Computer, a technology news site, BlackWallet has tried to send users an attack alert through the forum, yet many still lose their funds as they continue logging in. According to informed sources, at present hackers have been transferred to the virtual currency exchange Bittrex, and may convert it into another kind of virtual currency to hide traces.

Kevin Beaumont, a security researcher said:

https://twitter.com/GossiTheDog/status/952359336893874176

In response to the theft, BlackWallet has disabled hosting accounts and websites. In addition, a developer named Orbit84 also apologized to users, saying that he is currently negotiating with hosting providers to get as much information as possible about hackers and take the appropriate action. In the meantime, Orbit84 recommends that if a user ever typed a passcode on BlackWallet, it would be a good idea to immediately transfer the funds to another wallet.