Cryptocurrency asset lending platform, Celsius Network, has revealed an email server breach that resulted in malicious phishing links being sent to its users.
Within an official announcement earlier on 15th April, a number of Celsius users are receiving emails and SMS messages directing them to a malicious website impersonating the Celsius platform. The messages claim the link would direct them to a new web wallet from Celsius, purporting to offer $500 USD to users who create a wallet using the malicious link.
Celsius outlined that the phishing links were sent after “an unauthorized party managed to gain access to a back-up third-party email distribution system that had links to a partial customer email list” – permitting the malicious actors to focus on users with the phishing attempt.
If accessed, the fraudulent link prompts users to offer the seed phrase to their personal wallets, permitting hackers to empty their funds.
While the team asserts it had been able to react quickly and minimize the impacts to its users, a thread on Reddit suggests a min. of $300k worth of crypto has been stolen from Celsius’ users, with one forum-goer, “VaporFye,” claiming to has lost 20 Ethereum [over $50k] to the scammer.
Celsius CEO as well as its founder, Alex Mashinksy, sought to assure the community that “Celsius remains fully secure” and its systems “have not been breached in any way.”
“Users funds and sensitive data are safe within our back-end systems, and our security team has done a fantastic job to spot things really quickly notifying the Celsius community with extreme urgency on the steps and precautions to be followed.”
The announcement outlined that Celsius’s team remains actively investigating how the unauthorized actor was able to access its third-party email system.
“We know that users who had not registered an email or phone numbers with Celsius also received fraudulent messages to those contact details, thus we believe the info was collected from external data sources,” the post explained.
Despite the incident, the worth of CEL is up nearly 1% within the past 24 hours and has gained 40% within the past 7 days, and is trading at a price of around $6.90 USD at the reporting time.