Unfortunately, the long-time hodler was robbed of his 1400 BTC – worth more than $ 16 million – by exploiting Electrum Bitcoin wallet. But how was this user’s hacked? And what can others do to keep the same thing from happening to them?
Hacks are a common thing in the crypto
Due to the reduced frequency and severity of large crypto exchange hacks compared to the past, media reports have stopped addressing this Bitcoin-related crime. Attempts at phishing, ransomware and hacking on SIM cards are just three examples of cryptocurrency-related crime that has not been mentioned in the media at all.
Until recently, when several high-profile Twitter accounts of celebrities, politicians and company executives were hacked as part of a Bitcoin scam.
Hacks are common in the crypto, but they only make headlines when something important is attached. And a new hack revealed involving more than $ 16 million in stolen BTC could be another.
How did the hackers manage to steal 1400 BTC?
According to the appropriately named GitHub user “1400 BitcoinStolen”, the huge amount of BTC corresponding to his username is now gone due to the hack that robbed his Bitcoin wallet Electrum. Hacking is not the fault of the wallet or the user, but it highlights the importance of two key points.
The user has used the Electrum software since he last entered his BTC in 2017. Electrum has since released security updates that the user has not yet installed. Before he could move his Bitcoins, he was asked to update and fix potentially critical issues. But when he did, the software contacted the hacker server, and 1,400 BTCs were immediately transferred from the wallet to the hacker’s account – a grim reminder that you always have your software up to date.
Because Electrum is a “light client,” software engineer Ben Kaufman explained on Twitter that the software must connect to a public server before it can be connected to a blockchain.
This is a trusted third party that acts as an intermediary where hackers have been able to exploit this process – another key reminder that you never trust third parties with your private keys.
This unfortunate user is unlikely to get his resources back. For everyone else, however, it’s a reminder to keep your software up to date and rely on cold storage methods whenever possible.
Have you had anything to do with a hacker yet?
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