Dogevault hack confirmed, site compromised and 121 million Dogecoin likely stolen

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Dogevault is a popular online wallet, where users can store and send Dogecoin. Dogevault went offline without notice on May 11, and there were no announcements from the owners of dogevault. Dogevault came back online a day later, with this statement at the top of their page “Notice: We apologise for the downtime, a press release will be posted here within 24 hours. Please do not transfer any funds to Dogevault addresses while our investigation is under way.”

Reports starting coming out on the night of May 11 that Dogecoin had been transferred out of users accounts shortly before Dogevault was taken offline. One user said 950,000 Dogecoins had been taken out of their account without permission: http://www.usacryptocoins.com/thecryptocurrencytimes/uncategorized/the-popular-online-wallet-dogevault-is-offline-large-amounts-of-dogecoin-appear-to-have-been-stolen/ Other reports soon followed, it appears the Dogecoin in nearly every Dogevault account was transferred somewhere else, besides accounts with less than 1000 Dogecoin.

Today the owners of Dogevault released a statement confirming the site had been hacked, compromising the online wallet, and that funds were stolen, although the statement is a bit vague.

On the 11th of May, the Doge Vault online wallet service was compromised by attackers, resulting in a service disruption and tampering with wallet funds.

As soon as the administrator of Doge Vault was alerted, the service was halted. The attackers had already accessed and destroyed all data on the hosted virtual machines.

We are currently in the process of identifying the extent of the attack and potential impact on user's funds. This involves salvaging existing wallet data from an off-site backup. We will also closely be investigating potential attack vectors, and determining the security breach which enabled the attacker's to compromise the service.

Please do not transfer any funds to Doge Vault addresses while our investigation is under way.

The Dogecoin transferred out of Dogevault has been traced to this wallet with over 121 million Dogecoin, the wallet was at the same time the Dogecoin in Dogevault went missing. https://dogechain.info/address/DHKM6NDUUv9kaHAGi1QU7MRBNKfQiAdP3F

121 million Dogecoin is about $56,000. This is a massive loss for the Dogecoin community, if these Dogecoin are indeed stolen, and potentially the biggest Dogecoin robbery in history. Several Dogecoin charities were storing their funds in Dogevault, making this even more tragic. This once again proves that storing Cryptocurrency in online wallets is dangerous, it is much safer to store Cryptocurrency in a password protected wallet on your computer.

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