Cryptocurrency startup BlockFi has faced a major spam attack. According to Forbes, the attack targets the registration section. As a result of the hack, attackers flooded BlockFi servers with false registrations.
Due to the scale of the attack, the company had to stop registering for all new users. Head of BlockFi Zach Prince confirmed registration stopped, but did not specify the reasons. At the same time, the trading services of the project were not affected, Prince emphasized.
1/ We are temporarily pausing new signups for @BlockFi. Existing clients continue to have full access to the platform and everything other than new sign ups is operating normally. We experienced a minor
— Zac Prince (@BlockFiZac) March 8, 2021
In an interview with Forbes, Prince revealed that the spam attack is about the intention to create a “negative image” around BlockFi. The startup reportedly sent 500 racist messages to new accounts.
Damage to BlockFi’s reputation
It is noteworthy that the attack on BlockFi comes a few weeks after the media reported on the company’s plans to raise $ 150 million in investment. If the investment round is successfully closed, the company’s valuation may rise to $ 2.85 billion.
Earlier it became known that BlockFi took the second place in the growth of active users in the crypto lending market. So, in 2020, the company issued cryptocurrency loans to institutions for $ 18.6 billion.
However, BlockFi is not the only project hit by cyber attackers. Previously, users of the Blockfolio service suffered in a similar pattern. Then the attackers hacked the project’s social services to send out racist messages. A little later, Sam Bankman-Fried, head of the FTX crypto exchange, which owns Blockfolio, announcedthat all Blockfolio users’ trading accounts will receive $ 10 in apology.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
