A hacker stole over $400,000 in Stellar lumens by compromising BlackWallet's DNS server, redirecting deposits of 20+ lumens to another wallet. The attacker quickly moved most funds out, with some sent to Bittrex.
BlackWallet, a Stellar digital wallet provider, was hacked after attackers compromised its DNS server over the weekend. The attacker injected code that automatically redirected deposits of 20 or more lumens to a separate wallet, stealing approximately 670,000 lumens worth $444,000. The hacker rapidly moved the stolen funds out of the compromised wallet, with a significant portion sent to cryptocurrency exchange Bittrex. BlackWallet's creator acknowledged the hosting provider account was compromised and requested the site be taken down. As of press time, the site was inaccessible and it remained unclear whether Bittrex had frozen the stolen funds.