Bitcoin Core developer Luke Dash Jr. reported that his PGP-key and the loss of a large amount in the first cryptocurrency.
Looks like some of it is coinjoined to 1YAR6opJCfDjBNdn5bV8b5Mcu84tv92fa
— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) January 1, 2023
Dash Jr. did not specify the amount of damage. In the thread, he shared allegedly hack-related wallet address – at the time of writing, it contains 216.9 BTC (more than $3.6 million at the current rate). Four transactions completed on December 31, 2022.
According to the developer, he “has no idea” how attackers got access to his key. Asked why he noticed the problem so late, Dash Jr. explained that he only noticed the hack after receiving emails from Coinbase and Kraken about login attempts.
I only noticed at all because @coinbase and @kraken were emailing me about login attempts
I’ve been sick in bed
— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) January 1, 2023
The head of Binance, Changpeng Zhao, reacted to the incident. He stated that he informed the security service of the exchange about the need for monitoring.
Sorry to see you lose so much. Informed our security team to monitor. If it comes our way, we will freeze it. If there is anything else we can help with, please let us know. We deal with these often, and have Law Enforcement (LE) relationships worldwide.
— CZ 🔶 Binance (@cz_binance) January 1, 2023
“If there is anything else we can help with, please let us know. We often deal with such cases, and we have connections with law enforcement agencies around the world,” Zhao wrote.
In November, the head of Binance called self-custody of assets “one of the basic human rights,” but warned of “costly mistakes.” On January 2, he recalled that this approach “has a different set of risks.”
Sad to see even an OG #Bitcoin Core Developer lost 200+ BTC ($3.5 million). Self custody have a different set of risks.
We will try to monitor and see where we can help. 🙏 https://t.co/9eGZ7AFgC2
— CZ 🔶 Binance (@cz_binance) January 1, 2023
Reddit user SatStandard suggested that Dash Jr. “didn’t take it seriously enough” security breach dated 17 November. He added that the developer used the hot wallet “on the same computer that he did everything else on.”
Members of the crypto community expressed concern about the incident. One of them noted that if a Bitcoin Core developer could become a victim of a hack, then “most people have little hope.”
You’ve definitely been one of the most security conscious folks I’ve known in this space, so this is a little shocking. 😳 I’m not sure many would be able to have useful insight, unfortunately.
If this can happen to you, there’s little hope for most people, sadly.
— Jason Hughes (@wk057) January 1, 2023
Other commentators echoed this sentiment and noted that incidents like this cast doubt on the mass adoption of bitcoin.
Honestly this is a fair point. Mass adoption is a pipe dream if a top btc dev can’t even keep his wallet secure.
— CatOfWallSt.eth (@CatOfWallSt) January 2, 2023
“Mass adoption is a pipe dream if the top bitcoin developer can’t even secure their wallet,” the user wrote.
Namcios analyst noted that the community reaction is not a fair assessment of the situation. According to him, even an experienced specialist like Dash Jr. is not immune from mistakes.
4/ Luke, as any core dev, has a level of bitcoin knowledge that most people don’t.
But this doesn’t mean he can’t make mistakes.
So Udi’s equivalence of “if he messed up nobody should self custody” is dumb. That leap can’t be taken.
— Namcios (@namcios) January 1, 2023
Earlier, hardware wallet makers Ledger and Trezor recorded a significant increase in device sales amid the collapse of FTX.
In December, the CEO of P2P bitcoin trading platform Paxful, Ray Yousef, spoke out in favor of self-storage of the first cryptocurrency instead of centralized exchanges.
Recall that in November, the Web3 industry lost $391.6 million as a result of 29 exploits, including the Deribit hot wallet hack and the theft of FTX funds, according to PeckShield.
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