An early bitcoin developer was hacked, his fortune vanished

A cryptocurrency pioneer has been hacked. After a mysterious attack, a flagship ecosystem developer lost all of its bitcoins.

2023 is off to a bad start for Luke Dashjr. On his Twitter account, the developer explains that he has lost access to most of his bitcoins. The private key (PGP, ie Very good privacy ») was compromised. With the private key, which consists of a long string of characters, it is possible to take control of a wallet.

According to blockchain data 216.9 bitcoins were skimmed at the time of the operation or more than $3.5 million at the current price. That’s all his net worth, says Dashjr, who admits he’s living a real nightmare.

My PGP key was compromised and at least a lot of my bitcoins were stolen. I have no idea how. Please help me “says Luke Dashjr, surprising Internet users.

Luke Dashjr is one of the pioneers of Bitcoin. Dashjr has been a developer for more than 20 years and has worked intensively on it BitcoinCore, the open-source software that provides access to the cryptocurrency network. He entered the world of Bitcoin in 2011 and was particularly involved in activating the Segwit update.

Also Read: Discover the Crazy Story of the 50,000 Bitcoins Stolen from the Silk Road in 2012

A mysterious hack

In a series of tweets, he says he has no idea how the thieves did it. According to him, all his data was compromised. Curiously, the attackers also managed to get their hands on them his physical wallet, the accessory that secures transactions. This so-called “cold” wallet is not connected to the internet for security reasons. The thieves probably took the tool physically with them. The attack appears to have been orchestrated for a long time.

The developer uploaded the blockchain address to which the stolen funds were transferred. The attack took place on New Year’s Eve, December 31, 2022. After recovering the loot, the hacker immediately sent the bitcoins CoinJoin, a mixing service. This type of tool mirrors Tornado Cash and allows transactions to be made anonymous by mixing cryptocurrencies. These services are popular with criminals to cover their tracks and protect themselves from the authorities.

In response to a user, Luke Dashjr claims to have this contacted law enforcement. Unfortunately, the police could not help him. He also contacted the FBI through his Twitter account. So far these steps have brought nothing.

Binance is committed to freezing stolen funds

always on twitter, Changpeng Zhao, CEO and Founder of Binance, challenged Luke Dashjr. The manager has pledged that his exchange will take action as funds move through it:

“I’m sorry you lost so much. I’ve notified our security team to arrange surveillance. When they come to us, we freeze them. If there is anything else we can help you with, please let us know. We often deal with and have relationships with law enforcement agencies around the world.”

It’s not uncommon for a platform like Binance to agree Freeze Cryptocurrency from hacking or fraud. Once frozen, stolen cryptocurrencies cannot be recovered by a scammer. Given the funds used to rob Luke Dashjr, we assume the attackers will not make the mistake of channeling the funds to a centralized exchange.

Some netizens have questioned Luke Dashjr’s claims, believing that his statement is aimed at avoiding paying taxes on his cryptocurrencies. In response to these assumptions, Peter Todd, another well-known Bitcoin developer in the ecosystem, corroborated the victim’s claims:

“FYI I have confirmed this is real and not a twitter hack via a mutual friend.”

According to him, the hackers used a backdoor in Gentoo, a Linux distribution, to siphon Luke Dashjr’s private keys. The developer has not segregated its activities on different desktops to increase its security. For Peter Todd it’s negligence, but it happens to everyone even for experts”.

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