Binance Reported A Dusting Attack On The Litecoin Blockchain
Analysts at the Binance Bitcoin exchange recorded a large-scale dusting attack on the Litecoin cryptocurrency network. The target of this one, most likely, is to compromise user privacy data.
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
Therefore, the attackers sent tiny amounts of LTC to various wallets to track the further movement of these funds and establish the company/identity behind the addresses.
Theoretically, this can allow hackers to carry out targeted phishing attacks or blackmail as reported Binance.
A similar attack against Bitcoin users was recorded in October 2018 by the developers of the privacy-oriented wallet Samourai Wallet.
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, 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.