Blockchain Social Platform Steemit Suffers Cyberattack

Posted in: Markets
July 15, 2016 7:55 AM UTC

Blockchain-powered social media platform Steemit, a new novel experiment in social media that sees users rewarded in the token cryptocurrency Steem has been the target of a cyber attack.

Steemit, a new social media website that has grown tremendously since its launch two months ago has seen its token cryptocurrency Steem’s value explode over the past week. The digital currency now sits third in the cryptocurrency market value charts with over $360 million at the time of publishing, only after Bitcoin and Ethereum.

Speaking to CCN earlier, Steemit CEO Ned Scott described the platform as follows:

A social media website built completely on the public Steem blockchain, which brings all the benefits of cryptocurrency and immutability to social media.  Beyond that, users get paid to post and vote, similar to how miners are paid by Bitcoin.

Understandably, Steemit is getting plenty of attention for the way it incentivizes users who post and vote on its platform. Malicious hackers have taken notice too, with the platform the subject of a cyberattack late last night (UCT).

In an official statement provided to CCN, Ned Scott stated:

Steemit was today subjected to a cyber attack. In the attack, fewer than 260 accounts were compromised, and less than $85,000 worth of Steem Dollars and Steem may have been stolen.

The hack has now been contained. User accounts and wallets are not at risk, and we hope to soon reactivate the Steemit website to normal order. Any users whose accounts were compromised will be completely reimbursed.

Scott confirmed that the incident was reported to the police along with “other cyber crime authorities, including the FBI.” An internal investigation within the company is also underway.

Furthermore, digital currency exchange Bittrex, a partner of Steemit, is also involved in the investigation. All Steem trading through deposits or withdrawals have been temporarily suspended.

Notably, the cyberattack has compromised the website and the couple hundred user accounts resulting in the theft of those users’ funds. There is no indication of a hack of Steem Coin itself.

Featured image from Steem.

Last modified: May 21, 2020 10:20 AM UTC

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Samburaj Das @sambdas

Samburaj is the Editor for CCN, among the earliest and foremost publications covering financial and blockchain news. He has authored over 2,000 articles for CCN. Email him samburaj(@) or find him barely tweeting @sambdas

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