Guarda wallet users became victims of intruders

On December 30, 2020, multicurrency non-custodial wallet Guarda was attacked with spoofed DNS records. The project team blames GoDaddy hosting for the incident.

According to Guarda representatives, GoDaddy employees gave control of the account and domains [guarda.co and guarda.com] to intruders, which allowed the latter to redirect users to a fake back-up wallet download page.

Guarda asked GoDaddy to suspend the domains until access was restored, but it never happened. Project engineers tried to slow down the phishing site. According to them, 90% of the time that the domains were under the control of attackers, the phishing form was inaccessible.

Guarda is cooperating with the Estonian police. The project is considering filing a class action lawsuit against GoDaddy and cites a Nov. 21 investigation by cybersecurity specialist Brian Krebs. It says GoDaddy employees were victims of several phishing attacks — attackers looted their admin credentials to access other sites.

About 100 people have filed support tickets, according to Guarda’s Jan. 4 publication. Some are unhappy that they did not receive an email notification of the attack, which they believe would have minimized the damage.

The attackers, on the other hand, transferred the stolen assets to Ethereum and exchanged them for bitcoin superstar through the decentralized exchange Uniswap. Some funds, the project team assures, managed to fix on centralized platforms.

The service has already presented a compensation plan:

  • if the user lost up to $2,000, he will be refunded the full amount in bitcoin or stolen cryptocurrency. The alternative involves agreeing to pay $4000 in Guarda tokens with a three-year vesting agreement;
  • if the user lost between $2,000 and $10,000, they will get 50% back in bitcoin or will be offered double the amount in tokens with an agreement to three-year vesting;
  • If the user has lost more than $10,000, he will get 20% back in bitcoin or will be offered the equivalent of the lost amount +50% in tokens with the consent to three-year vesting.

The tokens will be issued by March 2021. The redemption will be made from a special fund.