Popular bitcoin wallet Electrum faces sophisticated denial-of-service attack

Popular bitcoin wallet Electrum faces sophisticated denial-of-service attack

The servers of Electrum, a popular Bitcoin wallet, were under heavy denial-of-service (DoS) attacks Sunday night; The total amount stolen could be in the “millions of dollars” so far. The company advised its users to limit the use of the platform until the issue is resolved, but provided little information on the investigation that’s underway.

Servers of Popular Bitcoin Wallet Under Attack, Millions of Dollars Could be Stolen

Electrum, a hugely popular Bitcoin wallet, is currently under heavy attack. The company announced on Twitter that its servers had fallen victim to heavy denial-of-service (DoS) attacks and that it was working on a more robust version of the Electrum server.

Hackers have launched the attack in order to direct users to compromised versions of the server designed to steal their wallet balances.

A security researcher familiar with the technology revealed that if these fake versions of Electrum are installed, all funds contained in the old versions are immediately lost. The unnamed source reportedly told Hard Fork that the total amount stolen is “in the millions of dollars so far,” adding that a $140,000 alone was stolen from a single user.

DoS Attack Continues Streak of Thefts from Electrum

While there is still no concrete evidence that links the ongoing DoS attack to any of the other previous attacks on Electrum, many Reddit users looking into the matter suspect there might be more to it. Phishing attacks have been a regular occurrence in the Electrum community for months, with the Trojan horse ‘electrumstealer’ and its variants believed to have stolen millions of dollars worth of Bitcoin so far.

Securing Bitcoin payments since 2011, Electrum is one of the most popular Bitcoin wallets

As the ongoing attack only seem to be targeting users with outdated Electrum clients, some have speculated that it was made in retaliation for the new protections made for Electrum users.

While developers are working on solving the issue, Electrum advised its users to download Electrum software either from the official domain or the company’s GitHub repository.

Users are also encouraged to run their own servers, as increasing the number of legitimate servers could help dilute the strength of the attack.

Posted In: , Hacks
Invest with AMFEIX

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Priyeshu Garg

Priyeshu Garg

Crypto Analyst @ CryptoSlate

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.