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Homepage / News November 23, 2017 263 views

Bitcoin Gold Wallet That Stole Private Keys Scooped $3.3 Million

Bitcoin Gold Wallet That Stole Private Keys Scooped $three.3 Million

Bitcoin Gold Wallet That Stole Private Keys Scooped $3.3 Million


Last week it emerged that a fake BTG wallet which had been promoted on the bitcoin gold web site was fraudulent. The team’s developers removed “mybtgwallet” when the scam came to light, but not before scores of innocent customers had been duped. The total quantity of cryptocurrency lost to the fraud has now been totted up – and it comes to a whopping $3.3 million.

See also: Bitcoin Gold Addresses ‘Scam’ Wallet and Premine Endowment Procedure

Fool’s Gold

The site containing the fake wallet, which encouraged customers to upload their private keys and claim their free of charge bitcoin gold, has given that been purged, but an archived version can nevertheless be viewed:

Bitcoin Gold Wallet That Stole Private Keys Scooped $3.3 Million

The average user, going to the bitcoin gold web site which contained a hyperlink to mybtgwallet, would have had no way of realizing that the wallet was a trap. The BTG group also tweeted links to the wallet and reassured customers that it was protected to use, leading to some out-of-pocket men and women to contact the complete affair a conspiracy. The profitable heist of more than $three million of cryptocurrency raises critical questions, not only about the diligence of the BTG group, but the obligations of developers as a complete.

Bitcoin Gold Wallet That Stole Private Keys Scooped $3.3 Million

This week, it also emerged that $7 million worth of the Verge altcoin had been stolen from Coinpouch, an iOS wallet which had also been promoted on the Verge site. Must developers be compelled to inspect the code for third celebration wallets ahead of advertising them? The average user lacks the technical nous to check for malicious code, but the identical can’t be stated of cryptocurrency devs. The bitcoin gold team also stand accused of being slow to act after the scam came to light, with a team member stating final week:

Preliminary investigations indicated that at least some of the claims of theft by the mybtgwallet site are reputable

These claims would seem to have been wholly precise. In total, $3 million of bitcoin, $107,000 of bitcoin gold, $72,000 of litecoin and $30,000 of ethereum was swiped by the entity behind mybtgwallet. The pseudonymous developer behind the fraudulent wallet went to wonderful lengths to orchestrate the scam. The wallet was supposedly open supply, but the code was later updated on Github, enabling the private keys from customers to be sent directly to the mybtgwallet scammer.

A statement released by the bitcoin gold group said:

The team is operating with safety authorities to get to the bottom of this issue…[we] will continue to cooperate in every single way achievable and operate tirelessly in hopes of receiving to the root of what happened.

The BTG group are anticipated to supply a further update in the coming days.

All That Glitters

Following the extent of the mybtgwallet hack came to light, one particular preceding beneficiary of forked coins – Bitmain’s Jihan Wu – had this to say:

Bitcoin Gold Wallet That Stole Private Keys Scooped $3.3 Million
With each and every passing fork, the birth of bitcoin cash is beginning to look like a textbook case in Trezor Announce Support for Bitcoin Gold But Other Platforms Steer Clearhow to fork a coin. With bitcoin diamond (BTD) the subsequent fork to be born, which is estimated to happen on November 24, bitcoin holders who possess their personal keys have a dilemma to face: claim BTD, or play it secure and ignore the forked coin altogether. The third alternative, of course is to send bitcoin to an exchange that will help BTD and disburse the coins, but relying on centralized exchanges is not with no its risks either. Regardless of the negative publicity surrounding bitcoin gold, the price of the virtual currency has climbed sharply this week along with its fellow fork bitcoin money.

Do you feel that cryptocurrency developers have a duty to confirm third party wallets? Let us know in the comments section beneath.

Photos courtesy of Shutterstock.

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Published at Thu, 23 Nov 2017 16:35:26 +0000