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Reddit user u/normal_rc: 'The attacker set up a lot of malicious servers. Once a user's Electrum wallet is connected to these servers, they see what appears to be an official message when sending bitcoin transactions, telling them to upgrade the Electrum wallet, which actually contains a fraudulent URL.

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On December 27, Reddit user u/normal_rc reported that Electrum's wallet had been hacked and that nearly 250 bitcoins (243.6 BTCs, nearly $1 million) had been maliciously stolen, coinelegraph reported. Electrum then confirmed that the attack included creating a fake version of the wallet to trick users into providing password information. Electrum responded on Twitter that "this is a persistent phishing attack on Electrum users" and warned users not to download Electrum from any source other than the official website.

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Denley further revealed that the 49 malicious Chrome extensions targeted cryptocurrencies wallets by Ledger, Trezor, Jaxx, Electrum, Myetherwallet, Metamask, Exodus and Keepkey. He found that the wallet most vulnerable was Ledger, which was targeted by 57 percent of malicious browser extensions. The second largest target wallet was Myetherwallet (22%), followed by Trezor (8%), Electrum (4%), Keepkey (4%) and Jaxx (2%)