Hackers Stole $413.000 from BlackWallet

The attack reportedly took place on 13 January after hackers managed to hijack DNS server for BlackWallet
15 January 2018   1919

Hackers have hijacked the DNS server for BlackWallet, an online wallet for Stellar Lumens (XLM), and has stolen about 669,920 Lumens amounting to about $413.000 according to the current rate.

The attack reportedly took place on 13 January after hackers managed to hijack its DNS server, change the settings and redirect it towards their own third-party server.

BlackWallet was compromised today after someone accessed my hosting provider account. He then changed the DNS settings to those of its fraudulent website which was a copy of BlackWallet.


The creator of BlackWallet said in a statement on Reddit

Many users have taken to social media, Reddit, Stellar and other cryptocurrency forums to warn others against logging into the compromised website and having their funds vanish from their wallets.

BlackWallet administrators have also been trying to contact Bittrex to block the hackers' account.

In early December, cryptocurrency mining marketplace NiceHash said its payment system was compromised and its entire bitcoin wallet was drained by hackers.

New Morgan Creek Fund to Exclude Pre-Mined Crypto

Ripple and Lumen won't be included to Morgan Creek Digital Asset Index Fund
28 August 2018   354

Morgan Creek, which manages $ 1.5 billion in assets, launched its own crypto fund, the Morgan Creek Digital Asset Index Fund, but refused to include some large crypto-currencies. This is reported by Forbes.

For example, in the new fund, which was managed by the American company Bitwise Asset Management, such cryptocurrencies as XRP, developed by the Ripple, and Lumen (XLM) of the Stellar project, are not represented, as their release was carried out through the so-called pre-goal.

If there’s a central party that owns 30% or more of supply then we withhold those from the index. Because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network.

Anthony Pompliano
Partner, Morgan Creek Digital 

The index fund includes a set of 10 major cryptocurrencies weighted by market capitalization, which is rebalanced monthly. There are some other requirements, such as the presence of custodial solutions and a restriction on the concentration of trade.

When forming the fund, the risks of centralization of crypto assets were taken into account because of the increased probability of manipulating their prices and possible issues of regulators if such assets were recognized as securities.

We’re fully prepared and feel we’ve built something that institutional investors will find attractive regardless of how the assets are categorized. Whether they’re securities or not.

Anthony Pompliano
Partner, Morgan Creek Digital 

According to the co-founder of Bitwise co-founder Hunter Hosley, the main difference between the Morgan Creek Digital Asset Index Fund and the HOLD 10 fund launched by his company is the availability of the first inspection committee, which included Morgan Creek CEO Mark Yusko, Pompliano and Bitwise Research Department head Matt Hogan.

Hosley said that the decision of the committee to limit cryptocurrencies with pre-currency is caused by two main factors: fears about the opportunities for fraud, which are possessed by large holders of assets, and the doubts of regulators for which a high degree of centralization is an additional basis that allows to recognize crypto currency as a security.

The Morgan Creek Digital Asset Index Fund is already available for institutional and accredited investors. Hosley promised that the fund will be audited by Cohen & Company from this fall, the results of which will be published on an annual basis. The first report will be submitted in early 2019