Major Attack Reported on Dogecoin Vault leads to Shutdown

Talladogea, here we come!

Dogecoin Hack.

BBC News and Technology, an extremely reliable news site, is reporting that hackers have attacked the Doge Vault, leading to a ‘Temporary Shutdown’. The Doge Vault is a site that many Dogecoin holders choose to hold their Dogecoin crypto currency. Doge Vault has issued a statement seeking to reassure holders, they go on to state that they took the decision to temporarily close the site when they noticed people ‘tampering’ with funds in wallets they were holding. They are currently said to be assessing the effects of the attack and the losses, if any, to Dogecoin holders. Some users of Doge Vault had reported that large amounts of cryptocoins were moved from the site just before the shutdown took place.

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Dogecoin has been growing in popularity in recent weeks, its lower value, in relation to bitcoins, and many sites have been giving away small quantities as an introduction to the coin. Both Reddit and Twitter have been involved in small giveaways. The nature of the currency has led many people to choose to keep their holdings in online wallets.  An official statement issued, declares that the hack-attack on the Doge Vault took place on 11 May and this attack has allowed the hackers, not only to access, but also, to destroy data on the Doge Vault servers that were underpinning the service..

The statement went on to say: “As soon as the administrator of Doge Vault was alerted, the service was halted,”  Doge Vault has declared that it will give out more comprehensive, and concrete, information within the next two days. Due to the damage to the data on the Doge Vault servers it is not possible to know, at this stage, if any Dogecoins have actually been stolen.  However many of the vaults users believe that many coins may well have been lost because of reports of large numbers of Dogecoins being transferred out just prior to the shutdown. Many of these outward transfers have been traced to one Dogecoin wallet that is currently holding 121 million Dogecoins. This wallet has a current fiat value of  circa 56,000 US Dollars, or just under 41,000 Euros.

Dogecoin was created by programmer, Billy Markus, from Portland, Oregon. The coin launched in December 2013 and has proved to be very popular within the cryptocoin community. Markus wanted to create a ‘fun’ crypto with the darker associations of Bitcoin (Silk Road connections et al.) Dogecoin has been involved in some high-profile sponsorships, as reported in Cryptocoinsnews, and this is debatedly, the first major credibility hit the currency has taken. Dogecoin has encouraged charitable funding as well as sports sponsorship. In January, Dogecoin announced its intention to raise $50,000 for the Jamaican Bobsleigh Team which had qualified for, but could not afford to go to, the Sochi Winter Olympics. Dogecoin has also been associated with NASCAR driver Josh Wise. On March 17, 2014, an anonymous benefactor donated 14 million Dogecoin to a campaign for providing drinking water to parts of drought-stricken Kenya as part of World Water Day, March 22, 2014. It was done publicly via a Twitter-based tip service, and was proclaimed as the: “most valuable tweet in history”.  In total, over 40,000,000 Dogecoin was raised for World Water Day by the Dogecoin Foundation.

Dogecoin has proved to be a capable and fun cryptocurrency, with a fast transaction confirmation speed. It is hoped that this hack-attack will not prove to be too damaging.