$50k in Dogecoin Rumoured to Have Been Lost in Recent Hack

Online dogecoin storage provider DogeVault.com has been compromised by hackers, according to an official announcement from the service.

The site shut down as a result of the attack, which also saw the destruction of all of the service's data. As a result, DogeVault is encouraging users not to transfer any funds to its wallet addresses while the attack is under investigation, and explained:

"We are currently in the process of identifying the extent of the attack and potential impact on users' funds. This involves salvaging existing wallet data from an off-site backup."

DogeVault has indicated that it will issue an additional statement on its findings within 24 to 48 hours of the initial post.

The overall loss of funds sustained by the site is as-yet unknown, though The Cryptocurrency Times has estimated that as many as 111m DOGE (nearly $51,000 at press time) could have been lost in the theft.

Community reaction

The r/dogecoin subreddit was quick to react to the news, with users speculating on funds lost in the hack. Reddit user igi00 suggested a personal loss of more than 2m DOGE (roughly $918.56 at press time), while heri93 estimated a loss of approximately 50,000 DOGE ($22.96).

Other forum posters used the news to highlight best practices for storing digital currencies such as dogecoin, including using cold wallet storage, while also sharing theories as to how the attack was perpetrated.

Next steps

First uncovered on 11th May, the DogeVault team says it will now look to recover existing wallet data from an off-site backup. DogeVault further suggested it would be investigating potential attack vectors – the paths by which the alleged hackers would have used to gain access to one of its computers or network servers.

At press time, DogeVault had not responded to a request for more information on the investigation and whether it will seek to reimburse site users for their losses.

Repayment plans have become a popular option for digital currency services that are compromised by attacks.

Even black market websites are in on the act. Most recently, leading online black market Silk Road 2.0 reported that 50% of its users have been repaid following a February attack that saw the loss of roughly 4,500 BTC.

Image via DogeCoin Assets