More than $300,000 Lost From Ethereum Wallet

Two weeks ago an Ethereum wallet was filled with hundreds of thousands of dollars. The only problem was that this wallet was hacked and stolen from other wallets.

In recent weeks, $400,000 worth of Ethereum was transferred to a hacker’s wallet.. Of that, $350,000 was stolen through a process that was made available to the public 2 months ago.. Some of the stolen funds were recovered from the hacker with some security measures.

Hacked

Most of the funds were stolen from only one user, 973 ether. Using Jaxx Wallet, this person was managing his wallet from a rooted Android phone.

This was the factor that allowed the hacker to gain access to the funds.

(For those who don’t know: rooted Androids like jailbroken iPhones. If you have a rooted phone, you can download new and special apps, but your phone’s security is not guaranteed.)

In this case, too, downloading an unsafe app seems to have allowed the hacker to infiltrate the phone.. After infiltrating the device, the hacker used a hacking program to extract the backup passwords for Jaxx Wallets. This program has been known for months, but since Jaxx is an online wallet (the type of wallet where coins are not stored but constantly used) no action has been taken.. The user, whose wallet was hacked and does not want to reveal his identity, is on coinidol.com:

“It looks like an easily fixable negligence, I’m in good health and life goes on.”

How does it work?

According to the researcher, who works at VX Laboratories and determined the program used, the hacking process was as follows:

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“Even if your Jaxx account is password secured, anyone with 20 seconds of access to your computer can easily find and copy your 12-word backup password. Jaxx doesn’t need to be open for this to happen.. Then, with this 12-word password, they can transfer your wallet and seed words to their computers and transfer all your cryptocurrencies.”

The Jaxx team thinks that repairing this program will make the digital wallet unnecessarily difficult to use.. Jaxx’s CTO Nilang Vyas:

“There will always be trade-offs between user experience, portability and security, and we think we’ve struck a great balance.. More than 7500,000 Jaxx and our former company Kryprokit wallets have been created since 2013. No funds were lost due to a mistake made by us before. We stand behind this amazing track record.” He said.

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