🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Monero's community wallet loses $460,000 due to privacy model loophole

EditorHari Govind
Published 05-11-2023, 07:40 pm
XMR/USD
-

Monero's Community Crowdfunding System (CCS) wallet, funded by donations, has been confirmed to have lost all its funds, according to developer Luigi in November. The loss, amounting to 2,675.73 XMR or approximately $460,000, was initially reported on September 1, 2023, by Colin Wu on Wu Blockchain. The incident involved nine transactions that exploited a potential vulnerability in the privacy model of the wallet.

Moonstone Research traced the attack back to a user of the Monerujo Android non-custodial Monero wallet. The user utilized the PocketChange feature to split a larger coin into multiple pockets for immediate spending without the standard 20-minute delay. This process resulted in the creation of 11 output enotes, an anomaly that suggested the use of either version 3.3.7 or 3.3.8 of Monerujo.

The hypothesis of a privacy model loophole as the potential vulnerability was proposed by SlowMist and referenced by Wu Blockchain in their initial report. This was further substantiated by Moonstone's analysis of four Crescent Discovery (NASDAQ:WBD) Reports and Monerujo's statement about the feature ensuring coins won't merge again.

The loss of funds from the CCS wallet marks a significant setback for Monero and raises concerns about potential vulnerabilities in other cryptocurrency wallets. As investigations continue into this incident, it underscores the importance of robust security measures within digital currency systems.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.