Scam Alert: BlockStream Users Targeted by Phishing Email

Popular non-custodial crypto wallet Jade which was created by leading Bitcoin (BTC) development studio Blockstream, has suffered an attack that has its customers receiving phishing emails from the perpetrators. 

Scammers Infiltrate Jade Wallet

Earlier today, users of Jade Wallet began to receive scam alert letters which stated that the Jade hardware wallet has been exploited and Blockstream issued an emergency firmware release. The perpetrator(s) pointed users to a red button in the letter where they could initiate a software upgrade at once. However, it turned out that Blockstream had no hand in it.

A phishing email is being sent out impersonating Blockstream. As we investigate, please remember:

1️⃣ DO NOT click on any suspicious emails claiming to be from Blockstream. Blockstream will NEVER ask for personal information via email.

2️⃣ NEVER enter your seed phrase online or…

— Blockstream (@Blockstream) October 21, 2023

According to a post shared on the X app by Blockstream, the sender of these emails is trying to impersonate the company. Fortunately, the hacker has not gained access to Blockstream’s mail server as the phishing emails were sent through an unassociated third-party domain. 

Investigations are currently ongoing and until then, users are advised to steer clear of any suspicious emails claiming to be from Blockstream. Users are not expected to open any of these links or emails. The wallet creator went on to add a disclaimer that “Blockstream will NEVER ask for personal information via email.”

Furthermore, users were urged to not share their seed phrase online or even tell it to someone else, even if they claim to be from the firm’s support team. Also, it highlighted that all updates should be done through the Blockstream Green wallet application or via the dedicated firmware website. 

Blockstream Users Suspects Foul Play

Noteworthy, many users of the sophisticated non-custodial wallet are not convinced by the explanation offered by Blockstream. Some of these individuals suspect that the firm may have intentionally leaked their data to the scammers. To further buttress their stance, these users cited that their email addresses were only shared with Blockstream. 

Attacks on crypto platforms in 2023 have reached unreasonable levels with criminals taking advantage of vulnerabilities on several protocols. An analysis of the losses incurred in Q3 via rug pulls, hacking attempts, and phishing attacks showed that approximately $890 million has been lost to these bad actors. 

Overall, this emphasizes the urgent need to bolster the security system that caters to most protocols and platforms in the blockchain industry.