Cyber Incident Victim: Steemit
Date:
Jul 2016
Location:
United States of America
Summary
A social media platform experienced a security breach resulting in the theft of up to $85,000 worth of its native currency, with approximately 260 user accounts compromised. The incident prompted a temporary shutdown of the service and suspension of trading activities by its partner exchange. While the company assured users their core accounts and wallets remained secure, unauthorized transactions were reported, including one instance exceeding $300. Affected users were promised full reimbursement. The breach triggered internal investigations and collaboration with law enforcement agencies, including the FBI. Users had previously criticized the platform's security measures, particularly the absence of two-factor authentication, which was cited as a vulnerability during community discussions preceding the incident.
| CIA Posture | Motives | Tactics, Techniques & Procedures |
|---|---|---|
| Available to members | 1 motive | 1 technique |
| Threat Actors | Type | Location |
|---|---|---|
| 0 actors | Available to members | Available to members |
Description
On July 14, 2016, the blockchain-based social media platform Steemit temporarily shut down its website following a security breach that resulted in the theft of up to $85,000 worth of Steemit dollars. The incident occurred approximately one week after the platform distributed $1.3 million to users as part of a rewards program tied to content popularity. CEO Ned Scott confirmed the hack through an official statement, noting that approximately 260 user accounts were compromised. While Scott asserted that user wallets and unaffected accounts remained secure, multiple users reported unauthorized transactions through Steemit's Slack channel and public posts. One user named 'dragonslayer109' documented over $300 being drained from their account via screenshots, while others criticized the platform's lack of two-factor authentication as a critical security gap.
The breach prompted immediate operational responses, including the suspension of Steemit's website and the halting of currency trading by partner exchange Bittrex. Scott initiated an internal investigation and engaged law enforcement agencies, including the FBI, to address the cybercrime. The company committed to fully reimbursing affected users and developing security enhancements. This incident contrasted sharply with Steemit's preceding week of growth, during which membership surged by 1600% following the high-profile rewards distribution. The platform's temporary shutdown during the investigation underscored the operational disruption caused by the attack, though no further compromises occurred after initial containment.