The Steemit platform has been gaining a lot of attention among cryptocurrency users as of late. A great deal of success can sometimes have unintended consequences. In the case of Steemit, some platform accounts have been compromised.  All affected accounts are restored to their rightful owners.

News broke late last night Steemit had suffered a cyber attack, affecting roughly 250 accounts. The primary objective of this attack was to empty user’s accounts, and a total of US$85,000 worth of Steem Dollars and STEEM has been stolen. Luckily, the team spotted what was going on, and managed to lock down the platform to avoid further losses.

The Steemit Breach Aftermath

As soon as the attack was identified, the Steemit website was taken offline. All of the user wallets and accounts have been confirmed to be safe. For those users who lost funds, their accounts have been completely reimbursed. Moreover, a police investigation is underway, and an internal procedure is being conducted as well.

Several cryptocurrency exchanges allow for STEEM to be traded. Bittrex, the partner exchange of the platform, was informed of the attack. They too suspended deposit and withdrawals of STEEM and Steem Dollars. At the time of writing, the wallet was still in maintenance mode.

Steemit CEO Ned Scott issued a statement on the situation:

“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. This will allow you to safely use with your Posting password.”

For the time being, a site-wide account reset will be enabled for newly secured accounts. Completing this procedure will not impact user balances or their original account name. It is good to see the platform take the proper course of action after this incident.

But there is another issue plaguing the platform right now, as some users are gaming the Liquidity Reward System. By the look of things, one user is using two accounts to generate 1,200 STEEM per hour, which translate to US$4k. It remains to be seen if and how this problem will be addressed moving forward.

Header image courtesy of Shutterstock

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About Author

JP Buntinx is a 30-year old FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he is working to achieve the same level of respect in the FinTech sector.

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