The popular online wallet site Dogevault is offline after attackers destroyed data on the site. The impact on user funds is unknown – although site users have reported withdrawals from their accounts, some as large as 950,000 Dogecoin.
In total, 121 million Dogecoin has vanished, according to the BBC’s report, with a real world value of around $56,000. Dogecoin has a cult following online, but its value is significantly lower than other cryptocurrencies such as Bitcoin – although it is created in a similar fashion, using a computer to carry out complex mathematical functions.
Some Dogevault users reported withdrawals just before the site was taken down. The Cryptocurrency Times suggests that the funds may be in another “mega wallet” containing 111 million Dogecoin.
Dogevault said in a statement, “As soon as the administrator of Dogevault was alerted, the service was halted. The attackers had already accessed and destroyed all data on the hosted virtual machines.”
“We are currently in the process of identifying the extent of the attack and potential impact on user’s funds. This involves salvaging existing wallet data from an off-site backup. We will also closely be investigating potential attack vectors, and determining the security breach which enabled the attackers to compromise the service.”
CNET reports that the site later said that it was, “compromised by attackers, resulting in a service disruption and tampering with wallet funds.” Dogevault has promised further information in two days’ time.
Unlike Bitcoin, the heist was not epic in scale, due to the low value of Dogecoin – a currency based on an internet meme about a Shiba dog, and “apparently created as a joke,” according to Digital Trends.
Dogecoin are sometimes given as gifts to posters on Twitter and Reddit, TechWeekEurope reports.
There are dozens of cryptocurrencies and e-currencies which have appeared in the wake of the soaring value of Bitcoin. Dogecoin is rather unique – hitting headlines after it rose 400% in value in 24 hours last year.
Author Rob Waugh, We Live Security