On December 30, 2020, the Guarda multicurrency non-custodial wallet underwent a DNS spoofing attack. The project team blames GoDaddy hosting for the incident.
The official statement regarding the security incident on December 30, 2020,
– Watch (@GuardaWallet) January 2, 2021
Guarda says GoDaddy employees have transferred control of account and domains [guarda.co и guarda.com] attackers, which allowed the latter to redirect users to the fake wallet backup download page.
Guarda asked GoDaddy to suspend domains until access was restored, but this never happened. The project’s engineers tried to slow down the phishing site. According to them, 90% of the time during which domains were under the control of attackers, the phishing form was unavailable.
Guarda cooperates with the Estonian police. The project is considering filing a class action lawsuit against GoDaddy and is citing a November 21 investigation by cybersecurity specialist Brian Krebs. It says that GoDaddy employees have been the victims of several phishing attacks – attackers tricked their admin credentials to access other sites.
Exclusive: Fraudsters changed the email and DNS records for a number of cryptocurrency trading platforms this week, after successfully social engineering employees at GoDaddy, the world’s largest domain name registrar. https://t.co/LYCdowb71Q pic.twitter.com/vlbSPsxPwI
– briankrebs (@briankrebs) November 21, 2020
About 100 people have filed support tickets, according to a January 4 Guarda post. Some of them are unhappy that they did not receive an email notification of the attack, which they believe would minimize the damage.
The attackers transferred the stolen assets to Ethereum and exchanged them for Bitcoin through the Uniswap decentralized exchange. Some funds, the project team assures, managed to be fixed at centralized sites.
The service has already submitted a compensation plan:
if the user has lost up to $ 2000, he will be returned the full amount in bitcoin or stolen cryptocurrency. An alternative option is to agree to the payment of $ 4000 in Guarda tokens with an agreement to a three-year vesting;
if the user has lost from $ 2,000 to $ 10,000, he will be returned 50% in bitcoin or they will be offered a double amount in tokens with an agreement to a three-year vesting;
if the user has lost more than $ 10,000, he will be returned 20% in bitcoin, or they will be offered the equivalent of the lost amount + 50% in tokens with an agreement to a three-year vesting.
Tokens will be released until March 2021. The ransom will be carried out from a special fund.
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