Luke Dashjr, one of the key developers of Bitcoin, the largest cryptocurrency by market capitalization, has been targeted by hackers. Over 216 bitcoins have been stolen from his crypto wallet. According to the current price of bitcoin around $16,570, Dashjr has suffered a loss of around $3.6 million (around Rs 30 crore) in this hacking attack.
Hackers have stolen this by gaining access to Dashjr’s Pretty Good Privacy (PGP). Giving information about this incident, Dashjr Tweet Tax help sought. He has also shared a wallet address to which the stolen bitcoins have been transferred. Complete information about this hacking has not been received. Dashjr’s Twitter followers suspect that a post he posted on November 17 last year allowed hackers to exploit a server vulnerability. Changpeng Zhao, the chief executive officer of Binance, one of the major crypto exchanges, expressed regret over the incident. He indicated that Dashjr kept his bitcoins in a self-custody wallet. Changpeng said that self-custody has different risks.
Users of self-custody wallets are not dependent on any crypto exchange or wallet provider for the safekeeping of their private keys. Doubts about self-custody crypto wallets were raised after users of the bankrupt crypto exchange FTX lost more than a billion dollars at the end of last year.
It is estimated that last year around 5.5 lakh bitcoin Cryptos have been delisted from the exchanges. Their value is more than 9.2 billion dollars. On-chain analytics firm Glassnode says these bitcoins have arrived in cold storage, which are non-internet crypto wallets. These include hardware wallets or paper wallets. Some big crypto firms have gone bankrupt this year. The bankruptcy of FTX, one of the major crypto exchanges, has caused a lot of damage to this market. Clients’ funds were used by modifying FTX’s software. The exchange’s chief engineer changed the code to allow Alameda Research, the firm of FTX founder Sam Bankman Fried, to sell its assets even if it took a loss on the borrowed money.