Recently, the network of Litecoin was subjected to a dust attack, which puts at risk the anonymity of the owners of the coins. The largest cryptocurrency exchange Binance reported that a total of 50 wallets on its platform was raised during mass distribution of the “dust”. However, analysts Glassnode is. According to them, the attack affects 294 582 address associated with Binance.
We will remind, itself dust the attack does not bear absolutely no harm directly. It is aimed at opening personalities behind the defined addresses. The attacker sends a small part of the coin — in this case, Litecoin — thousands of wallets.
Each transaction has its UTXO remains of cryptocurrencythat the user receives from each transfer. When the victim of dust attacks commits another transaction sent to her earlier, “dust” is mixed with the amount of the transfer, and the attacker is able to track the movement of funds on UTXO and transaction-based associate of the owner of the wallet to a real person. In 2018 the concept of the dust of the attack became widely known. In order to protect the creators of the Samourai purse Wallet have introduced the ability to label and not to use the UTXO from a very small transaction — that is, “dust”.
Here’s a tweet of the company, which reveals the number of affected wallets.
The recent $LTC dusting attack on @binance affected 294,582 addresses. During our analysis, we also uncovered a similar large–scale attack in April. pic.twitter.com/T0lMBN6VPG
— glassnode (@glassnode) August 15, 2019
The chart below compares the current dust attack APR. The red indicates the number of addresses of the victims, while pink shows the number of wallets of the attackers. As you can see, this time the result of fraud were much more effective, though in reduced numbers.
Project Manager Binance Academy James Jagger was the first who recognized dust attack on Litecoin. He also found a purse responsible for sending coins. It turns out that behind all this is the Russian mining pool EMCD. According to co-founder Glassnode Jan Happel, Poole allegedly had hoped to advertise its services to the holders of Litecoin.
Whether so it actually? Dust attack can indeed be used as a marketing tool. For example, users of social platforms Steemit also part of getting “dust”, which is attached to a certain advertising message. Another service BestMixer.io also makes a is sending small particles of coins.
It looks so. Pay attention to the advertising message in the right part of the screenshot.
Dust attack is sometimes used by law enforcement to identify criminals. “Dust” send to “dirty purses” involved in the money laundering and financing of terrorism. Thanks UTXO police can track the financial flows of criminals.
It is never clear what it wanted to achieve Russian pool. As you can see, the dust attack can be a formidable weapon against the anonymity of users of the cryptocurrency. To guard against such threats, be sure to check all receipts on your wallet, especially tiny.
Read more about dust attacks can be found in our cryptodata millionaires. Go!
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