He gets robbed of 213 Bitcoins on New Year’s Eve!

It’s been a rough start to 2023 for Luke Dashr. One of Bitcoin’s earliest developers and one of the community’s most prominent figures has just announced that almost all of his BTC has been stolen.

All 213 BTC stolen?

In a series of tweets on January 1, Luke Dashjr, one of the lead developers of Bitcoin, said that his PGP – Pretty Good Privacy – key had been leaked and many of his Bitcoins “had been stolen”.

In response to a Twitter user’s question about this possible hack, the developer replied that he has “no idea” what happened.

Netizens reacting to the news made a number of guesses about the vulnerabilities the hackers might have exploited, but none of them could be verified with certainty.

Some of the funds were sent to CoinJoin mixers, which helps anonymize transactions.

In an update a few hours later, Luke Dashjr confirmed that all the BTC he was holding had been stolen. The published address shows that 213.6 bitcoins were transferred, which is equivalent to $3.5 million at current prices.

Luke Dashjr doesn’t understand how this could have happened, he reached out to the FBI and his Twitter community for help. Cointelegraph posted a comment from a user asking how one of the original developers of Bitcoin Core, who is very security-savvy, could help.

Blockchain Security

As a reminder, Bitcoin Core is open source software released by Satoshi Nakamoto in 2009, originally called Bitcoin Qt. The software is open and accessible to everyone, which is the decentralization philosophy of Bitcoin.

Bitcoin Core provides access to the Bitcoin network, so transactions on the Bitcoin blockchain can be received, sent, or simply verified.

Today, few developers can boast of participating in such an adventure, which makes it possible to secure the Bitcoin network.

As a reminder, a cryptocurrency holder has a private key and one (or more) public keys, which are sequences of numbers and letters.

The private key, which must remain strictly secret, enables users to make transactions (payments) in cryptocurrencies, while the public key, known to everyone, allows them to receive transactions (payments) in turn. It’s a bit like RIB in France when you have a bank account.

Details of the case are expected to emerge, helping to understand how a prominent member of the Bitcoin community was able to lose such a large amount of money, if it was kept in a cold wallet.

We remind you that it is better to keep your cryptocurrencies in “cold” wallets, never reveal your private key to anyone and use the best security measures.

Using cold wallets

Cold wallets (or “cold wallets”) store private keys associated with cryptocurrencies of users outside the network (computer, phone). They make it possible to execute transactions (transactions on decentralized platforms, sending cryptocurrencies, buying NFTs) for users connected to the network.

Other means of protecting your cryptocurrencies are so-called “hot wallets”, which are connected to the Internet or centralized cryptocurrency platforms – such as Binance or Coinbase – hold the private keys of cryptocurrencies. users for security reasons.

Therefore, if the platform goes bankrupt, it removes the users’ private keys. We saw it with the fall of FTX.

Despite the uncertainty surrounding the incident, Luke Dashjr received support from Changpeng Zhao on Twitter.

Binance’s CEO said the company’s security team was aware of the theft, and if the missing bitcoins passed through the cryptocurrency exchange, they would be frozen.

Leave a Comment