MyEtherWallet is a web app for storing and sending ether and ethereum-based token. Its users, unfortunately, experienced an attack this Tuesday, April 24, and it all ended with losses around $152,000 worth of ether.
The company immediately alerted users that they are in danger and it tweeted a warning at precisely 7:29 a.n. EDT within only 15 minutes of when the cyber attack began.
“Couple of DNS servers were hijacked to resolve http://myetherwallet.com users to be redirected to a phishing site. This is not on @myetherwallet side; we are in the process of verifying which servers to get it resolved asap,” the tweet said.
Couple of DNS servers were hijacked to resolve https://t.co/xwxRJ4H4i8 users to be redirected to a phishing site. This is not on @myetherwallet side, we are in the process of verifying which servers to get it resolved asap.
— MyEtherWallet.com (@myetherwallet) April 24, 2018
Users took to social media to report that they lost funds and Micky Socaci, the lead developer at BlockBits.io explained the attack in a post to the ethereum subreddit.
“Do not use myetherwallet.com if you’re using Google Public DNS (188.8.131.52 / 184.108.40.206) at this moment.”
“Do not use myetherwallet.com if you’re using Google Public DNS (220.127.116.11 / 18.104.22.168) at this moment,” he posted.
“It seems these DNS servers are resolving the domain to a bad server that CAN steal your keys!” Socaci added.
His explanation supports MyEtherWallet’s claim that the attack was not on their side.
The affected funds are shuffled around and broken into smaller increments, Ethescan blockchain information provider’s data says.
There’s a stringent need for hardware wallets for increased security
MyEtherWallet CEO Kosala Hemachandra stated that all the DNS servers are resolving back to the correct addresses.
He also said that the cyber attackers were apparently “large enough to make a DNS poisoning attack on Google public DNS servers, which made it cache a malicious IP address for myetherwallet.com.” Google fixed the problem “in a very short time.”
He continued and said that we’re living in a very unfortunate world in which even the highest security websites can get hacked.
He reported to CoinDesk that he is really sad about the news and he hopes that MEW team will be able to educate users and convince them to use hardware wallets and the local versions of MEW.
MyEtherWallet (MEW) is a free, open-source, client-side interface that generates Ethereum wallets and more.