LocalBitcoins Hacked

Wilfred Michael 

Wilfred Michael

News reporter

26 January 2019,
LocalBitcoins Hacked

Peer-to-peer bitcoin exchange, LocalBitcoins, was hacked by an unauthorized source, today Jan 26, resulting in loss of bitcoins held by users on the platform. An update about the ugly incident was released by the firm after that, although it did not say the total amount of bitcoins lost to the security breach.

Here are key points revealed by Local Bitcoins about the hack :

  • The hack took place at around 10:00:00 UTC today.

  • The breach was as a result of third-party software that is used by the P2P exchange

  • Outgoing transactions on the platform was temporarily disabled to allow the platform to take charge of the situation

  • Outgoing transactions are re-enabled now

  • Six users have so far identified themselves as victims of the hack

  • The exchange’s online forum is still disabled.

  • LocalBitcoin accounts are now safe to use again while users are encouraged to enable 2-Factor authentication

User Reportedly Lost $498 to LocalBitcoins Hack

While we await an official announcement of total funds lost, a comment on a thread posted on Reddit by a user of the platform revealed that around 0.14 BTC ($498) was stolen from his BTC wallet on LocalBitcoins during the security breach.

Sadly, we discovered that bitcoin wallet allegedly used by the hackers to recieve the stolen funds now have around 7.95 BTC ($28,000) in its balance. Also, It is still unclear if the mentioned address is the only one used by the hackers to carry out their scheme.

The latest phishing attack at LocalBitcoins adds up to the recent efforts made by hackers to steal cryptocurrencies by exploring vulnerabilities on exchanges. In November 2018, we reported that Turkish authorities arrested 11 suspects for stealing $80,000 worth of Bitcoin from different crypto users.

Also earlier this month, we reported that hackers used a fake Coinbase Twitter account to promote a giveaway scam, although users did not fall prey to it.