Steemit Secures Hacked User Accounts, Advises New Passwords

July 15, 2016

Steemit, the blockchain-based social media platform that was targeted in a cyberattack saw malicious hackers hack user accounts and their balances. Since then, a recovery process has seen compromised accounts with balances over $100 USD, restored and refunded to the affected users.

Blockchain-powered Steemit saw some 250 user accounts compromised along with $85,000 in Steem dollars and the token cryptocurrency Steem, stolen, in a cyberattack yesterday.

A recent update from Steemit CEO Ned Scott reveals that the Steemit team has since been able to secure compromised accounts containing balances over $100 USD. These accounts have also been restored to their rightful owners, Scott revealed.

He also revealed that platform will begin to allow all of those secured accounts to reset their passwords, within the next two days.

Steem Coin value reached a high of $4.54 yesterday before falling over 20% in the early hours of today to $3.67. The cryptocurrency, along with the Steemit platform has risen up remarkably since its launch two months ago, reaching an all-time high of $4.93 per token with a market cap of $403.5 million on Wednesday, two days ago. Steem remains the third highest faring cryptocurrency in market cap, behind Bitcoin and Ethereum, at the time of publishing.

Chart from Coinmarketcap

Meanwhile, Steemit partner and digital currency exchange Bittrex has temporarily suspended trading of the platform’s token currency Steem on its platform, until an investigation is concluded.

“The Bittrex team is completing analysis of our wallet. Once it has passed their rigorous compliance checks, they will reopen the wallet for deposits and withdrawals,” Scott added.

Also read: Blockchain Social Platform Steemit Rewards Users with $1.3 Million

The chief executive also had choice security advice for all Steemit users following the hacking incident. He stated:

To all Steemit users: if you have not done so already, please reset your account passwords. We ask this to ensure that everyone’s account is secure. Remember that each account has 3 keys: an Owner Key, an Active Key, and a Posting Key.

We recommend following best security practices by choosing unique passwords for each of these keys.

Furthermore, he reaffirmed that all Steem or Steem Dollars stolen as a result of the hack, worth about $85,000, will also be fully refunded by the platform to affected users.

Featured image from Shutterstock.

Last modified (UTC): July 15, 2016 14:34

Tags: Steemit
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