Coinfeeds Daily → Monero Community Crowdfunding Wallet Hacked, $460,000 Stolen

Monero Community Crowdfunding Wallet Hacked, $460,000 Stolen

Published: Nov 06, 2023 | Last Updated: Mar 17, 2024
Howard Kane

Investigations ongoing as Monero developers work to prevent future breaches

The Monero community has recently experienced a significant security breach, resulting in the loss of nearly $460,000 from its community crowdfunding wallet. The attack, which occurred on September 1, 2023, was not disclosed until November. The source of the breach remains unidentified, and investigations are ongoing to uncover the mechanics behind the attack.

Details of the Attack

Monero's community crowdfunding wallet was drained of its entire balance in the attack, totaling 2,675.73 Monero. The separate hot wallet used for payments to contributors was not affected by the breach. The Monero core team has called for the General Fund to cover the liabilities resulting from the attack. There is speculation that the breach may be linked to previous attacks and could have originated from the wallet keys being available online.

Moonstone Research Investigation

Moonstone Research conducted an investigation into the breach, tracing the movement of the stolen funds. They were able to track three of the attacker's transfers and identified one transaction, bb77d...d1a58, as most likely created by the attacker. Two other transactions, 2c5b4...ad5ec and 06550...ca47b, were also likely involved in the movement of the stolen funds.

Moonstone Research believes that the attacker is a Monerujo wallet user who had PocketChange enabled. They have recommended that Monero exchanges and services check if they received any of the identified transactions.

Community Response and Future Measures

The Monero community has shown support for the developers in the wake of the breach, appreciating their transparency in handling the situation. The developers, shocked by the breach, are currently focused on uncovering its mechanics and assessing the future structure of the crowdfunding system to prevent such incidents in the future.

While the source of the breach remains unknown, the incident underscores the importance of robust security measures in the management of digital assets. It serves as a reminder for individuals and organizations alike to ensure the security of their digital wallets and to regularly update their security protocols.

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