Trading site LocalBitcoins hacked

Peer-to-peer bitcoin trading portal LocalBitcoins has been compromised. Thanks to a security breach, caused by third party software, a hacker managed to gain access to cryptocurrency wallets of at least six users. LocalBitcoins took its forum offline, after it discovered the hack.

It’s likely that the hacker gained access to the DNS server of LocalBitcoins. This way he was able to replace the website with a fake phishing version that looks and feels exactly the same. The hacker stole two-factor authentication details and used them to access crypto wallets. Currently LocalBitcoins is back in operations and things are back to normal.

LocalBitcoins is operating in 248 countries, and in some countries it’s even a go-to destination for bitcoin traders. Especially countries that lack crypto exchanges with support for a national currency are represented on the website.

This hack is looks like an exact copy of the EtherDelta hack from December 2017. One of the only centralized parts of the exchange, its DNS servers, were hijacked. Ultimately the hacker stole hundreds of ETH, with a value of more than 250 thousand dollars.


Originally published at NEDEROB.