Peer-to-peer cryptocurrency exchange LocalBitcoins has suffered a security breach. The hack has affected “a small number of users” who have had their wallets accessed by hackers.
LocalBitcoins released an update on Saturday, stating that they had detected a “security vulnerability from an unauthorised source.”
A user of the exchange revealed on Twitter that the LocalBitcoins forum site had been replaced by a phishing landing page, which prompted users to input their two-factor authentication details as well as login details.
As a result, hackers had access to users’ wallets, with one Reddit user claiming that their wallet was “wiped clean” by the hackers.
Update 1: It seems someone has taken over the forum site with a phishing page.. if you visit the forum and are then redirected to the login page DO NOT log in!
— MJ (@BitcoinBabeAU) January 26, 2019
LocalBitcoins, who disabled outgoing transactions when the breach was identified, said: “We have taken a number of measures to address this issue and secure the limited number of accounts that might have been at risk.”
This isn’t the first case of a hack affecting cryptocurrency exchanges this month. New Zealand-based Cryptopia fell victim to a hack that saw more than $11 million siphoned out of the site.
Last year, Japanese exchange CoinCheck saw $496 million stolen from their site by hackers, while the famous Mt Gox hack in 2013 ended in a loss of $357 million.
For more news, guides, and cryptocurrency analysis, click here.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.