Hackers steal several online wallets storing digital currency Dogecoin

Hackers cleaned out several online wallets used to store Dogecoin, the new and popular digital currency, on Christmas day, stealing millions from thousands of users.

However, in an act of generosity the Dogecoin community has launched efforts to help reimburse victims of the wallet heists.

The most prominent site hit by the digital bank heist was Dogewallet, which had since shut down. The Dogewallet team explained on Reddit that it would try to reimburse users who had lost their Dogecoin.

Users who made investments in Dogecoin through Dogewallet – meaning their Dogecoin would be used for day trading by the Dogewallet team could all look forward to being  reimbursed, while as many ''non-invested'' users as possible too would be compensated for their lost Dogecoin, according to the Dogewallet team.

It was not clear though as to who would be providing the refunded Dogecoins to affected users.

Dogewallet hackers reportedly stole an estimated 21 million Dogecoins worth approximately $12,000, at current exchange rates, while another online Dogecoin wallet, Instadoge, was also apparently hacked, but had been restored since then.

ABC News quoted Jackson Palmer, a co-founder of the currency who was caught by surprise, as saying it was interesting that there had been a focus on Dogecoins in the short two or three weeks they had been up and running. He said he thought it was crazy this could happen, but the hackers might be trying to get in early.

Palmer added that he and the other co-founder of Dogecoin, Billy Markus were both looking to beef up security in the next month.

Even though the idea of Dogecoins started as a joke, according to Palmer, but had now grown in popularity.

Palmer told ABC News that for the majority of their people, it was their first experience with cryptocurrency. He added, it was lot more accessible and the majority of people were having a lot of fun with it.

Though a single Dogecoin might be worth only a fraction of a penny, Palmer saw it being useful as a currency, though not in the real world.