Ether Wallet Hacked, with Massive Losses for the Users

Ether Wallet Hacked, with Massive Losses for the Users

Classic Ether Wallet’s web domain is currently under control of an unknown attacker. This wallet is one of Ethereum Classic’s main clients, and according to Reddit, it all happened on midnight between June 29, and June 30.

So basically, in the night between Thursday and Friday, the Classic Ether Wallet was hijacked. Apparently, what happened here is that the hacker managed to convince the support staff at 1on1 web hosting provider to hand over this domain’s control to them.

When they did, the hacker stole the domain by redirecting it to their own server. Also, in order to redirect the funds to their own account, they altered all transactions. It wasn’t until several hours later that people found out about the attack when Ethereum Classic themselves warned on Twitter against using the Wallet.

Since accessing the domain was practically impossible, many proposed DDoS attacks. They wouldn’t return the domain, but at least they would force it to shut down and go offline due to overwhelming requests. This would also prevent others from losing their money as well.

Soon, the domain was blacklisted on Cloudflare, all thanks to the efforts of ETC team, as well as cryptocurrency experts. And anyone who tried to access the website from there on was stopped with a phishing alert.

Soon after, the site went down. However, everyone who logged into their wallet account on June 30 has had their private keys exposed. Thanks to this, hackers were able to empty those accounts, which was obvious to everyone who entered their accounts.

Affected users turned to Reddit, and created a thread with ETC addresses where their money went. When all is put together, it is estimated that over $300,000 was lost to the attack. Some users lost more than others, with one reporting the loss of 800 ETC, which is around $14,500.

These funds left their accounts in smaller groups, and instead, they went to multiple other accounts. This shows that hacker has knowledge of the service called ‘tumbler’. Thanks to using it, they were able to hide their tracks, and disappear after the deed was done.