Blockchain Social Platform Steemit Suffers Cyberattack

 Blockchain-powered social media platform Steemit, a new novel  experiment in social media that sees users rewarded in the token  cryptocurrency Steem has been the target of a cyber attack. Steemit, a new social media website that has grown tremendously since  its launch two months ago has seen its token cryptocurrency Steem’s  value explode over the past week. The digital currency now sits third in the cryptocurrency market value charts with over $360 million at the time of publishing, only after Bitcoin and Ethereum. Speaking to CCN earlier, Steemit CEO Ned Scott described the platform as follows: 

A social media website built completely on the public  Steem blockchain, which brings all the benefits of cryptocurrency and  immutability to social media.  Beyond that, users get paid to post and  vote, similar to how miners are paid by Bitcoin.

Understandably, Steemit is getting plenty of attention for the way it incentivizes users  who post and vote on its platform. Malicious hackers have taken notice  too, with the platform the subject of a cyberattack late last night  (UCT). In an official statement provided to CCN, Ned Scott stated: 

Steemit was today subjected to a cyber attack. In the  attack, fewer than 260 accounts were compromised, and less than $85,000  worth of Steem Dollars and Steem may have been stolen. The hack has now been contained. User accounts and wallets are not at  risk, and we hope to soon reactivate the Steemit website to normal  order. Any users whose accounts were compromised will be completely  reimbursed.

Scott confirmed that the incident was reported to the police along  with “other cyber crime authorities, including the FBI.” An internal  investigation within the company is also underway. Furthermore, digital currency exchange Bittrex, a partner of Steemit,  is also involved in the investigation. All Steem trading through  deposits or withdrawals have been temporarily suspended. Notably, the cyberattack has compromised the website and the couple  hundred user accounts resulting in the theft of those users’ funds.  There is no indication of a hack of Steem Coin itself.