{"id":23309,"date":"2018-12-27T14:53:00","date_gmt":"2018-12-27T14:53:00","guid":{"rendered":"http:\/\/327cf0d9-7f26-46a5-9e5e-41be0d126036"},"modified":"2018-12-27T14:53:00","modified_gmt":"2018-12-27T14:53:00","slug":"users-report-losing-bitcoin-in-clever-hack-of-electrum-wallets","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/users-report-losing-bitcoin-in-clever-hack-of-electrum-wallets\/","title":{"rendered":"Users report losing Bitcoin in clever hack of Electrum wallets"},"content":{"rendered":"<div class=\"relatedContent alignRight\">\n<h3 class=\"heading\"><span class=\"int\">More security news<\/span><\/h3>\n<\/div>\n<p>A hacker (or hacker group) has made over 200 Bitcoin (circa $750,000 at today&#8217;s exchange) using a clever attack on the infrastructure of the Electrum Bitcoin wallet.<\/p>\n<p>The attack resulted in legitimate Electrum wallet apps showing a message on users&#8217; computers, urging them to download a malicious wallet update from an unauthorized GitHub repository.<\/p>\n<p>The attack began last week on Friday, December 21, and appears to have been temporarily stopped earlier today after GitHub admins took down the hacker&#8217;s GitHub repository.<\/p>\n<p><strong>Also:\u00a0<\/strong><a href=\"https:\/\/www.zdnet.com\/article\/hacker-steals-ten-years-worth-of-data-from-san-diego-school-district\/\"><strong>Hacker steals 10\u00a0years worth of data from San Diego school district<\/strong><\/a><\/p>\n<p>Admins of the Electrum wallet expect a new attack to soon get underway, with either a new GitHub repo or a link to another download location altogether.<\/p>\n<p>This is because the vulnerability at the heart of this attack has remained unpatched, albeit Electrum wallet admins taking steps to mitigate its usability for the attacker.<\/p>\n<h3>How the attack works:<\/h3>\n<ul>\n<li>Attacker added tens of malicious servers to the Electrum wallet network.<\/li>\n<li>Users of legitimate Electrum wallets initiate a Bitcoin transaction.<\/li>\n<li>If the transaction reaches one of the malicious servers, these servers reply with an error message that urges users to download a wallet app update from a malicious website (GitHub repo).<\/li>\n<li>User clicks the link and downloads the <a href=\"https:\/\/www.virustotal.com\/#\/file\/370a9a9759154c2c9ec6d224462907184a5b283a8ff0cb3b316fd3ffb2df6aaa\/detection\" target=\"_blank\" rel=\"noopener noreferrer\">malicious update<\/a>.<\/li>\n<li>When the user opens the malicious Electrum wallet, the app asks the user for a two-factor authentication (2FA) code. This is a red flag, as these 2FA codes are only requested before sending funds, and not at wallet startup.<\/li>\n<li>The malicious Electrum wallet uses the 2FA code to steal the user&#8217;s funds and transfer them to the <a href=\"https:\/\/www.blockchain.com\/btc\/address\/14MVEf1X4Qmrpxx6oASqzYzJQZUwwG7Fb5\" target=\"_blank\" rel=\"noopener noreferrer\">attacker&#8217;s Bitcoin addresses<\/a>.<\/li>\n<\/ul>\n<p>The problem here is that Electrum servers are allowed to trigger popups with custom text inside users&#8217; wallets.<\/p>\n<section class=\"sharethrough-top\" data-component=\"medusaContentRecommendation\" data-medusa-content-recommendation-options=\"{&quot;promo&quot;:&quot;promo_ZD_recommendation_sharethrough_top_in_article_desktop&quot;,&quot;spot&quot;:&quot;dfp-in-article&quot;}\">\n<\/section>\n<p>Initial attacks were more effective and seemed to have tricked more users because than latter attacks. This is because the Electrum wallet rendered these server messages as rich-formatted texts, making the popups look more authentic and providing a ready and clickable link to users.<\/p>\n<p><span class=\"img aspect-set\"><img decoding=\"async\" src=\"https:\/\/zdnet2.cbsistatic.com\/hub\/i\/2018\/12\/27\/b86818a9-581f-4c69-8a33-d9eb025e6f9f\/9600b33f28ed017eeb729cb6bb69fd42\/electrum-error-message.png\" class=\"\" alt=\"electrum-error-message.png\"\/><\/span> <span class=\"credit\">Image: SoberNight<\/span><\/p>\n<p>After receiving news of attacks, the Electrum team responded by silently updating the Electrum wallet app, so these messages don&#8217;t render as rich HTML text anymore.<\/p>\n<p><span class=\"img aspect-set\"><img decoding=\"async\" src=\"https:\/\/www.zdnet.com\/article\/users-report-losing-bitcoin-in-clever-hack-of-electrum-wallets\/\" class=\"lazy\" alt=\"electrum-error-message-no-html.png\" data-original=\" https:\/\/zdnet3.cbsistatic.com\/hub\/i\/2018\/12\/27\/b5095901-e929-4808-a130-5ad55b157bac\/ce60f8ff4dda814a7a89106e09201925\/electrum-error-message-no-html.png\"\/><\/span><noscript><\/p>\n<p><span class=\"img aspect-set\"><img decoding=\"async\" src=\"https:\/\/zdnet3.cbsistatic.com\/hub\/i\/2018\/12\/27\/b5095901-e929-4808-a130-5ad55b157bac\/ce60f8ff4dda814a7a89106e09201925\/electrum-error-message-no-html.png\" class=\"\" alt=\"electrum-error-message-no-html.png\"\/><\/span><\/p>\n<p><\/noscript> <span class=\"credit\">Image: SoberNight<\/span><\/p>\n<p>&#8220;We did not publicly disclose this [attack] until now, as around the time of the 3.3.2 release, the attacker stopped,&#8221; <a href=\"https:\/\/github.com\/spesmilo\/electrum\/issues\/4968\" target=\"_blank\" rel=\"noopener noreferrer\">said<\/a> SomberNight, a developer part of the Electrum wallet team. &#8220;However they now started the attack again.&#8221;<\/p>\n<p>Not all users who received these new errors didn&#8217;t find the mysterious popup with mangled text fishy. Some users were more inconvenienced than alerted. These users <a href=\"https:\/\/www.reddit.com\/r\/Electrum\/comments\/a9x374\/my_electrum_just_got_hacked\/\" target=\"_blank\" rel=\"noopener noreferrer\">manually copy-pasted<\/a> the text link shown inside the popup into their browser, and then downloaded and installed the tainted Electrum wallet update.<\/p>\n<p>The attack came to a halt a few hours ago when GitHub admins <a href=\"https:\/\/github.com\/spesmilo\/electrum\/issues\/4953\" target=\"_blank\" rel=\"noopener noreferrer\">removed<\/a> the repository containing the malicious wallet version.<\/p>\n<p>As stated before, new attacks are expected to get underway, with possibly a new download link. But the issue here remains the attacker&#8217;s malicious servers.<\/p>\n<hr\/>\n<h3>Must read<\/h3>\n<hr\/>\n<p>Devs are currently looking into replacing the ability to send customized error messages with error codes, which the Electrum wallet would then decode on the client-side and show a preset message instead.<\/p>\n<p>SomberNight says Electrum devs have currently identified at least 33 malicious Electrum servers that have been added to their network, but the number appears to be around 40-50. It is unclear what devs intend to do in regards to these servers at the time being.<\/p>\n<p><span class=\"img aspect-set\"><img decoding=\"async\" src=\"https:\/\/www.zdnet.com\/article\/users-report-losing-bitcoin-in-clever-hack-of-electrum-wallets\/\" class=\"lazy\" alt=\"electrum-sybill-servers.png\" data-original=\" https:\/\/zdnet2.cbsistatic.com\/hub\/i\/2018\/12\/27\/00f42846-863c-4023-bacd-2e08e3a6fade\/9778991d48b6ad70d725973bd9da0f67\/electrum-sybill-servers.png\"\/><\/span><noscript><\/p>\n<p><span class=\"img aspect-set\"><img decoding=\"async\" src=\"https:\/\/zdnet2.cbsistatic.com\/hub\/i\/2018\/12\/27\/00f42846-863c-4023-bacd-2e08e3a6fade\/9778991d48b6ad70d725973bd9da0f67\/electrum-sybill-servers.png\" class=\"\" alt=\"electrum-sybill-servers.png\"\/><\/span><\/p>\n<p><\/noscript> <span class=\"credit\">Image:SoberNight<\/span> <\/p>\n<h3>Related stories:<\/h3>\n<p>READ MORE <a href=\"https:\/\/www.zdnet.com\/article\/users-report-losing-bitcoin-in-clever-hack-of-electrum-wallets\/#ftag=RSSbaffb68\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hacker has stolen over $750,000 worth of Bitcoin over the past seven days.<br \/>\nREAD MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":23310,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[62],"tags":[],"class_list":["post-23309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-zdnet-security"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Users report losing Bitcoin in clever hack of Electrum wallets 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | 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