Hacker Steals $12,000 Worth Of Bitcoins In Brazen DNS-Based Attack

A Bitcoin brokerage, Bitinstant was hit by hackers who used a bit of social engineering to take control of the company’s DNS servers and ultimately funnel out $12,000 worth of Bitcoins.

Hackers first took over the Bitinstant’s DNS domains and then the company’s email servers. They used these to log into another Bitcoin exchange, VirWox, and pull out $12,480 worth of Bitcoin out of a Bitinstant account.

The company detailed the hack in a blog post last week, noting that no “personal or transactional information has been leaked.”