According to Forbes, the temporary shutdown of the BlockFi app for cryptocurrency and lending this week was due to an attacker.
According to company employees, on March 7, an attacker started the process of registering more than 1,000 fake accounts with email addresses of real users.
The attacker entered the terms “vulgar and racist” as the first and last name for the fake accounts, which automatically sent 500 abusive emails before BlockFi resolved the issue and stopped the registration entirely.
Sarah Sheridan, a Philadelphia-based journalist, tweeted on March 8: “I am furthest from an investor in cryptocurrencies.”
BlockFi CEO Zach Prince described the attack as “a technical issue with the new withdrawal workflow” before revealing the full extent of what happened in today’s Forbes article.
A similar attack was reported last month by the FTX cryptocurrency exchange. The attackers managed to deceive the power of Blockfolio Signal, a product FTX purchased in August 2020, to project racist messages. FTX chief Sam Bankman-Fried believed a competitor was behind the attack.
Some BlockFi customers reported that they were unable to gain full access to the company’s website after a scheduled maintenance period that ended earlier that day, March 7, but that case cannot be traced back to the attack.
Visitors to the BlockFi website are currently being greeted with a message stating that while registration remains closed, existing BlockFi customers still have full access to the platform.
The attack on BlockFi’s troubles comes at a critical juncture for the three-year-old company as it is currently trying to close a financing round that will bring the rating close to 10%. $ 3 billion. Crypto assets have raised more than $ 100 million in investment capital to date, including contributions from Coinbase Ventures and Winklevoss Capital.
In May 2020, BlockFi was hit by a data breach that resulted in customers’ full names, addresses and birthdays being compromised.