Litecoin recorded “dust attack”

Analysts at the Binance bitcoin exchange recorded a large-scale “dust attack” on the Litecoin cryptocurrency network, the purpose of which, most likely, is to compromise user privacy.

Approximately 5 hours ago there was a large-scale dusting attack on $ LTC @ Litecoin users.

One of many transactions: https://t.co/zgk9gPRNcU

Here's what you need to know and how to protect yourself: https://t.co/KNVoQLwBUb

– Binance (@binance) August 10, 2019

So, the attackers sent tiny amounts of LTC to various wallets in order to track the further movement of these funds and establish the company / identity behind the addresses.

According to Binance, in theory this can allow hackers to carry out targeted phishing attacks or blackmail.

A similar attack against Bitcoin users was recorded in October 2018 by the developers of the privacy-oriented wallet Samourai Wallet.

If you have recently received a very small amount of BTC in your wallet unexpectedly, you may be the target of a "dusting attack" designed to deanonymise you by linking your inputs together – Samourai users can mark this utxo as "Do Not Spend" to nip the attack in the bud. pic.twitter.com/23MLFj4eXQ

– Samourai Wallet (@SamouraiWallet) October 25, 2018

The wallet almost immediately introduced the Do Not Spend feature, which allowed users not to mix the inputs of the dust transaction with their other transfers, which reduced the attack efficiency to zero.

Recall, a day earlier, Coinbase revealed the details of a “sophisticated, focused, well-thought-out attack” that could allow hackers to gain access to its systems and funds for billions of dollars.

Recently, employees of the Kuna bitcoin exchange were also subjected to a phishing attack.

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