A major security breach has led to the complete loss of funds from the community crowdfunding wallet of Monero (XMR), a popular privacy-focused cryptocurrency. Around 2,675.73 XMR, equivalent to nearly $460,000, were stolen in the attack.
The breach occurred on September 1, but it was only revealed on GitHub on November 2 by Monero’s developer, Luigi. The exact cause and origin of the attack remain unknown.
The Community Crowdfunding System (CCS) of Monero, whose funds were wiped out in the attack, is used to fund development proposals from its members. “This attack is unconscionable, as they’ve taken funds that a contributor might be relying on to pay their rent or buy food,” Monero’s developer Ricardo “Fluffypony” Spagni pointed out.
The compromised CCS wallet had been set up on an Ubuntu system in 2020, alongside a Monero node. Luigi and Spagni were the only two individuals with access to the wallet seed phrase.
Speculation is rife among developers that the breach may have emerged from the wallet keys being available online on the Ubuntu server. “It’s entirely possible that it’s related to the ongoing attacks that we’ve seen since April,” noted Spagni. The Monero core team is now calling for the General Fund to cover current liabilities.
The latest attack adds to the growing concerns about the security of cryptocurrency wallets. The value of Monero (XMR) following the news is yet to be determined.
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