Bitcoin developer loses $3.3 million in massive hack

Published: 2023-01-02T15:33:29

Updated: 2023-01-02T15:33:41

A Bitcoin core developer has had his server hacked after his security key was compromised. The hacker has supposedly stolen over 200 BTC, worth around 3.3 million dollars.

Luke Dashjr, a developer who works on Bitcoin Core, the technology and security behind the cryptocurrency, has lost over 200 Bitcoins in an apparent hack.

According to Dashjr’s Twitter, the PGP key (Pretty Good Privacy) was compromised and allowed the hacker to loot his Bitcoin from the computer they were being stored on.

A PGP key is an encryption method that utilizes two different keys to lock away information. Dashjr has identified the Bitcoin wallets that some of the money was sent to, but as of yesterday, claims it has all gone.

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Dashjr had been targeted in an attempted smash-and-grab on his Bitcoin stash earlier in the year but brushed it off after investigating. On his Mastodon, Dashjr stated he had “purged the backdoors” implemented in the attack, but couldn’t find any evidence of it being used.

Dashjr also deleted a tweet in regards to his “cold wallet”. This is a type of Bitcoin wallet that is kept offline to ensure maximum security. Dashjr questioned whether or not it was “Maybe not as cold as intended?”

According to another developer, Peter Todd, Dashjr’s active PC runs a Linux distro called Gentoo. This was also where he stored his “hot” Bitcoin wallet. A hot wallet is one that is actively connected to the internet and can be accessed at any time.

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If a compromised piece of software made it on, as Dashjr suspects, then it was an inevitability of it getting stolen and not a targeted attack.