LocalBitcoins hacker uses phishing attack to steal funds

The peer-to-peer cryptocurrency exchange LocalBitcoins has shut down its forums amidst reports on social media that its users have been subjected to a phishing attack.

According to a thread on the r/Bitcoin subreddit, a hacker compromised the forums in order to bring up a new prompt for users’ login credentials – implying they’ve been logged out. As soon as they entered their credentials, the thread claims, these details are sent to a hacker who then empties their accounts. An address being shared on social media already has $28,200 worth of BTC in it, after reportedly tricking 5 victims.

LocalBitcoins has responded by shutting down its forums. When quizzed by one user, it reportedly responded to the inquiry with an unexpectedly cheery email:

 “Hello! We have received reports of few unauthorised transactions. That is why we had to temporarily disable outgoing bitcoin transactions to investigate the issue. Right now outgoing transactions have been enabled again. Everything should work normally! Our apologies due to inconvenience! — Best regards, LocalBitcoins”