Crypto Hack: Core Bitcoin Developer Loses Over 200 BTCs

Some Twitter users wondered if it was just a "boating accident" and not a hack.

The latest news of alleged hacking has sparked a debate about self-custody as some experts have been alerting the crypto community about self-custody after the FTX failure. 

Source : Getty

Luke Dashjr, one of the core developers of the world's first cryptocurrency, Bitcoin, reported a loss of over 200 coins in a recent hack on December 31, 2022, ahead of the new year. According to Dashjr, his PGP (Pretty Good Privacy) key was compromised that led to the theft of most of his coins. On January 1 this year, he posted on Twitter that a hacker had allegedly accessed his PGP key to carry out the theft. PGP is a common security method that is used to access encrypted information. He shared a few of the wallet addresses where some of his stolen Bitcoins were transferred. However, he has not revealed the total amount of BTC stolen from his wallet.

In a tweet, he said he had "no idea how" his coins were stolen and that he needed help. 

PSA: My PGP key is compromised, and at least many of my bitcoins stolen. I have no idea how. Help please. #Bitcoin

— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) January 1, 2023

The wallet address that he tweeted about displayed details about four transactions between 2:08 and 2:16 PM UTC on December 31. It contained information on a total of 216.93 BTC, which is worth more than $3.6 million at the current price.

Earlier in November 2022, he had tweeted about his server being compromised by some "new malware/backdoors on the system."

PSA: My server was accessed this morning by an unknown person. Full analysis in progress, but take extra care that you PGP-verified any downloads. #Bitcoin

— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) November 17, 2022

He said, "PSA: My server was accessed this morning by an unknown person. Full analysis in progress, but take extra care that you PGP-verified any downloads."

PSA: My PGP key is compromised, and at least many of my bitcoins stolen. I have no idea how. Help please. #Bitcoin

— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) January 1, 2023

He informed a user on the microblogging platform that he came to know about the recent hack only after Coinbase and Kraken mailed him about login attempts.

Binance CEO Changpeng Zhao said, "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."

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

Many have been speculating that bad security could have been the reason for the reported loss of Dashjr's Bitcoins.

Some Twitter users wondered if it was just a "boating accident" and not a hack. He was referring to a situation where people usually claim they lost their Bitcoins in order to avoid paying exorbitant taxes.

Top tier boating accident. 👍

— Nate (@beeforbacon1) January 1, 2023

The latest news of alleged hacking has sparked a debate about self-custody. Zhao has been alerting the crypto community about self-custody after the FTX failure. Earlier, he said, "Sad to see even an OG #Bitcoin Core Developer lost 200+ BTC ($3.5 million). Self-custody [has] a different set of risks."

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.