Litecoin (LTC) wallets are reportedly hit by a new kind of a cyber-attack according to the emerging reports that we are reading more about in today’s altcoin news.
The latest attacks are called dustings. They haven’t affected the LTC markets yet but it is something that the crypto traders should be very aware of. There has been a huge activity over the past few days on crypto Twitter as the reports are emerging that a new attack has hit the Litecoin (LTC) wallets. The Binance Academy tweeted an alert with a detailed explanation:
“Approximately 5 hours ago there was a large-scale dusting attack on @Litecoin users.”
Explained shortly, the dusting attack is when scammers try to break the privacy of the cryptocurrency and it this case that means Litecoin. The attack works by sending small amounts of the altcoin to private wallets. Then, the attackers try to trace the transaction activity of the litecoin wallets and try to discover the identity of the person that owns them. The term ‘’ dust’’ refers to the small fraction of crypto coins that the users usually ignore. More than a hundred satoshis may be referred to dust as the amount is so small that the people usually don’t notice it. It is also important to the attacks remain prevalent on crypto exchanges as the small amounts of transactions remain in the wallets cannot be longer used or transferred.
In the cases of Bitcoin and Litecoin, dust is usually defined as any transaction output that is lower than the fees for the transaction itself. A dust limit can be later calculated according to the size of outputs and inputs with usually a few hundred satoshis for bitcoin. The transactions equal to or smaller than the dust limit are usually rejected by validating nodes as spam. By sending little dust to multiple crypto wallets, the scammers can monitor the transactions in an attempt to reveal links between them. The goal is to identify the companies or owners of the wallets and to executive further scams and fraud such as phishing attacks.
As explained in the latest cryptocurrency news, Bitcoin has usually been the target of choice for the scammers but this time they chose the Litecoin wallets instead. Some of the wallet providers offer safeguards such as ‘’ do not spend’’ option on small amounts of crypto coins. If the dust is not moved then the attack is denied. The LTC prices and markets are still not affected by this type of attack and the network is safe as well. The network is safe because it relies on social engineering to be successful.
Litecoin Dumps More Than 50 Percent But A Bounce Is Expected
"Decent falling wedge with correct volume pattern with support at green makes for a decent long opportunity. Setup I would favor most is wicking through liquidity and closing above. This would signal a long entry. $92 and $104 would then be the targets with $111 and $117 to fully close out any remaining long position if you can ride the local corrective bounce trend."As explained in the latest cryptocurrency news, Litecoin dumps more than 50 percent but is now trying to break out of the wedge and seal the $75 as support.
No Interest For Working On The Litecoin Protocol: Charlie Lee
‘’I was extremely disappointed to discover that no progress had been made on CT since the announcement, especially when I stand on stage telling everyone it’s happening and we are actively working on it.’’The CT in the conversation stands for Confidential Transactions which is a protocol upgrade that Lee promised to happen about eight months ago but at the time he declared that CT will be available before this year ends. This is one of the reasons why there is no interest in working on the Litecoin improvement. Lee also noted on Twitter saying that though Litecoin GitHub shows no code commits in 2019, there is still some work being done that does not master the branch. The Litecoin creator admitted that he ‘’dropped the ball’’ on the promised Mimblewimble and CT protocols. Lee also noted that the updates have been side-tracked by activities in the adoption arena neglecting core developments such as the issue of fungibility as noted in some of the best cryptocurrency news sites. While responding to criticism from Richards, Charlie Lee gave a startling admission about the pedigree of his cryptocurrency saying:
‘’The honest truth is that no one is interested in working on Litecoin protocol development work. At least no one technically competent. You can’t just throw money at this problem. This is true for Litecoin since the beginning. It has only been me, Warren, and Thrasher.’’
Litecoin And Its Dusting Attack: What Happened And Why?
“It was network-wide, which meant it affected all users of litecoin that had an active litecoin address at the time. The address of the person responsible for the dusting attack can be found here: https://blockchair.com/litecoin/address/LeEMCDHmvDb2MjhVHGphYmoGeGFvdTuk2K
“We became aware of the dusting attack on Saturday morning when one of our binance angels had received a small amount of LTC into their litecoin wallet.”
The co-founder of the blockchain data provider Glassnode, Jan Happel, also spoke about Litecoin and its dusting attack. He looked into it to confirm it and focused on the extra data which came up, showing a previously unreported dusting attack which occurred in April this year. As Happel said:
“We have done a quick query into the LTC blockchain and analyzed the number of utxo's that carry a smaller value than the mean tx fee that day. If a UTXO contains less balance than the minimum amount required to spend it (fee) that day, it becomes stuck/unspendable — this is what we technically define as dust.”
For those of you unfamiliar with dusting attacks, the altcoin news present them as a signature assigned to any unspent value (through UTXO which is the unspent transaction output) - merged to make the transaction amount.
This was the first time a large scale attack like this had occurred. Litecoin and its dusting attack were also explained by Jager as:
“The person behind the dusting attack owns a mining pool based out of Russia, EMCD[dot]io. They reached out to express that their intent was to advertise their mining pool to the users of Litecoin, however, it's unclear from our perspective or anyone else's as to whether there were alternative motives. The owner of the pool was not aware that he was subjecting all these users to a dusting attack and spreading fear among the Litecoin community.
“It's interesting to note, that even if this was not the intent of the mining pool owner, he provided a base for malicious actors to analyze. You see, the person responsible for conducting the dusting attack doesn't necessarily have to be the one collecting the data, they can just merely be providing a service so that someone else can collect all the information and analyze it at a later date.”
Even though they seem like a small and unharmful activity, dusting attacks can undermine user anonymity and be used against users to steal precious digital assets.
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