LocalBitcoins Hacked, 8 BTC Reported Stolen but Potentially More
The popular peer-to-peer (P2P) bitcoin trading platform LocalBitcoins has been accessed by “an unauthorized source,” the platform confirmed, which was caused by a third-party feature vulnerability, Bitcoinist reports.
According to the post, an unidentified hacker or hacker group detected a security vulnerability in the LocalBitcoins forum and linked it to a phishing forum.
After the hackers gained access to the user’s sensitive account data, the accounts were then emptied of all Bitcoin.
LocalBitcoins has “temporarily disabled” its forum according to the splash page message. The message also directs users to the LocalBitcoins sub-reddit, where horror stories are already being shared.
The message that was also placed on this temporarily disabled page is also a URL to the LocalBitcoins Subreddit, where a number of users have already taken the initiative in sharing their unfortunate experiences.
According to one Reddit user, he had lost a great deal of his initial investment in Bitcoin in one fell swoop, with others reportedly losing a grand total of nearly 11 BTC, equating to roughly $33,000.
It remains unclear whether this is this is the actual (or the only) address of the hacker.
It is worth noting that last year, the P2P trading platform disabled multiple accounts because of new EU privacy laws.