In a vicious cyber attack, hackers have stolen a large cache of Stellar Lumen cryptocurrency. The amount of cryptocurrency stolen is said to be worth more than $400,000. The attack took place on BlackWallet, a company providing digital wallet services.
The hackers were able to steal the currency by breaking into the company’s web wallet application and stole 669,920 Lumens from people’s wallets.
It has been reported that the creators of BlackWallet tried to warn users about the incident through social networking channels and had also directed them not to log-in to their accounts. But many people did not get the memo, and continued to login in spite of the advisories issued by the company.
The creator of BlackWallet, who goes by the name Orbit84 on Reddit apologized to its users for the hack. He further said that he was doing all it takes to ensure that the funds are remunerated to the affected users and he is in talks with his hosting provider to get more information about the modus operandi of the hackers.
He also requested customers who had previously used BlackWallet to move their funds to a different wallet with the help of Stellar account viewer to ensure safety and security of their funds and assets. Orbit84 also reiterated that the wallet was only an account viewer service and the company did not store any data in any of its servers.
Stellar Lumens is the 9th most popular cryptocurrency in terms of market capitalization according to tracking website CoinMarketCap. It also reports that currently there is around $9.5 billion worth of Lumens in circulation and it is one of the fastest growing alternative currencies in the market right now.
The market reacted negatively to the news, with major cryptocurrencies down at double digit rates. The negativity in the markets was further increased by reports that Asian governments plan to crack down and regulate cryptocurrencies flowing in their countries.
This hack is another example of how digital currencies still have certain issues along with their advantages, and how better steps need to be taken to ensure that these incidents do not occur again. It also shows the volatility of the market.