Electrum User to Lose Millions Again, Media Reports

With help of 140k bots, users are being redirected to fake Electrum website, where they are proposed to download malicious "update"
09 April 2019   270

As a result, the “sophisticated” DoS attacks against the servers of the popular Electrum Bitcoin Wallet, which have been going on for about a week, users have already lost “millions of dollars”. The Next Web reports it with the reference to the statement of an unnamed security expert.

Earlier, representatives of Electrum confirmed the fact of the attack, but did not make any statements regarding the possible loss of users.

Electrum servers are currently under a DoS attack. We are working on a more robust version of the electrum server. In the meantime, affected users should disable auto-connect, and select their server manually.

Electrum @Twitter

The Next Web, meanwhile, writes that more than 140,000 bots lead the attack, which redirect users to fake versions of Electrum.org, where they are offered to upgrade to a new version of the software. When downloading and installing it, bitcoins are stolen.

Fake Electrum Website Message

The publication also quotes a cyber security expert who wished to remain anonymous, who says that the attack began about a week ago and is happening at a completely new level, sending up to 25 GB of traffic per second to Electrum servers.

In addition, the expert said, according to the analysis, the damage from the actions of hackers has already exceeded several million dollars, and one individual user lost $140k worth Bitcoins.

The situation was also commented by leading Electrum developer Thomas Vogtlin. According to him, the Electrum team hopes to solve the problem "in the coming hours or days." At the same time, he noted that users who have not updated their wallet version for a long time are at particular risk.

For security reasons, Electrum has disconnected software older than version 3.3 from public servers and recommends downloading the application only from electrum.org, as well as establishing a connection to servers in manual mode.

This is not the first time in recent times when Electrum users lose money as a result of hacker actions. So, in December, an unknown attacker stole Bitcoins from Electrum users with help of phishing attack via many malicious servers. The estimated damage from his actions was about 200 BTC.

Bitcoin SV Blockchain to Undergo Reorganization

This happened due to the fact that some blocks were rejected by Bitcoin SV blockchain
19 April 2019   104

Several blocks were rejected by the Bitcoin SV network after the addition, which caused the re-organization in the blockchain's history.

Almost each time someone is trying to produce a very large block on the BSV chain, there’s a reorg. Just an hour ago our Blockchair engine has witnessed a 3-block reorg (I think that's a record)! Blocks #578640–578642 got orphaned by a longer chain because they were too big

Nikita Zhavoronkov

Lead developer, Blockchair

The large blocks, about which Zhavoronkov writes, are no longer displayed by the blockchain browser, since they are not part of the main chain in which they were located until a certain moment, until they were replaced by another chain, which eventually became dominant.

This is basically exactly the problem the BU gigabock testnet identified. At sizes > 100mb the mempools were so out of sync that blocks were basically transmitted as full blocks.

BSV had ONE 128mb block and it caused a six block reorg. On the BU testnet sustained 128mb blocks caused a total breakdown of the chain where there were so many reorgs that every node had a different view of the state of the blockchain.

Chris Pacia

Developer, Bitcoin

Thus, Chris assumes that the problem is caused not by the malicious actions of the network members, but by its functional bug. 

This update is noticeable in the background of recent Bitcoin SV delisting campaign, which was started by the number of big exchanges as a reply to lawsuit by Craig Wright, BSV supporter, against anonymous critic.