Monday, October 25, 2021
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124 BTC Stolen From Users

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A backdoor is found on the popular paper wallet site

When user create paper wallets on website, the private keys fell into the hands of cybercriminals, as a result, users lost more than 124 BTC.

Bitcoin paper wallets is a cold storage method for cryptocurrencies. The user simply prints out the public and private keys and can transfer Bitcoin to this wallet for storage.

The popular site for generating paper wallets turned out to be vulnerable to a backdoor, because of which attackers gained access to the private keys of the users wallets. Once Bitcoin arrive on these wallets, hackers instantly steal them.

Computer security experts talked about the vulnerability. Usually, when creating a wallet, the user must generate random keys. However, on the site, the cybercriminals implemented a method called “test keys”. During creation, several test keys were generated and saved on the server. One of these test keys was used to hack wallets, when user complete their wallet creation, and not a user-generated random key, as the hackers had access to these test keys.

On January 7, user “Nick Wendell” lost 14.5 BTC. He created a paper wallet and transferred Bitcoin to it, but after a few minutes they were stolen.

Within a minute I realized what had happened. I had the feeling that I was falling from a height and would never reach the bottom. I remember walking in circles in shock, the user wrote.

Note that the MetaMask detects as a phishing site and warns the user about it.

It is critical that the Bitcoin Wallet creation should take place using trusted software and completely offline. It is important to remember that if you lose your private key, attackers can steal all of your savings. said Dustin Dettmer, an independent Bitcoin developer.

In 2019, exchange specialists discovered a vulnerability in their Wallet Generator, due to which the same private keys could be generated twice when creating wallets.

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Mark Brennan
Mark is 27, holds a Master degree in Business Administration, and works as a content Creator at TheCryptoBasic mostly on Crypto Market Updates. Since 2014 he has been active in the crypto sector. Thanks to the Business College in which other than Business subjects, he was taught about the disruptive potential of Blockchain. His interests include Blockchain technology and Crypto Market innovations. He also founded a small startup in which he gives lectures on cryptocurrencies.


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