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A New Threat Appears for Bitcoin and Altcoin Owners

A New Threat Appears for Bitcoin and Altcoin Owners

The Reddit user lost $ 1,200 in Ethereum after accidentally leaving his wallet’s recovery statement in the GitHub repository of online file storage.

How Ethereum Was Lost

While this is indeed an unusual case, it turns out that hackers are preparing malicious bots.Reddit user said, “A hacker took my rescue statements and stole $ 1200 ethereum from my Metamask wallet in under 100 seconds. “Hackers used a bot to scan reminder phrases across GitHub, and I accidentally left it in the GitHub repository while sending it to a Hack Money hack-hon.”

Reminder (or recovery) phrases are combinations of 12 words, arranged in a particular order, allowing you to restore access to a crypto wallet.Essentially, it is the “last line of defense” next to private keys (the password that allows you to spend cryptocurrencies). If someone has one, they can have full access to your wallet and the funds held in it.

In short, you should not upload your private keys or recovery statement to open source repositories like GitHub or any other public place for that matter.The user still used to lend to other people crypto Compound in his defense protocol (Ceth) said that it has blocked almost $ 700 worth of tokens ERC-20. However, if he withdraws the money, he says that the bot will send each ETH to the wallet it specified.

In Ethereum, you need a token to pay transaction fees (called “gas”) to transfer your tokens. If two people try to carry the same amount of Ethereum at the same time, the one with the higher fee is likely to be processed. However, the bot automatically trades with higher wages – it wins the race every time.

“Although some cryptocurrencies and tokens remain, the bot will pull any ethereum and / or surpass my trials by providing more gas to prevent me from carrying my cryptocurrencies.”

A similar situation was reported last September, when hackers endangered a wallet containing a series of rare CryptoKitties containing unprecedented Ethereum tokens, each representing a unique digital “cat”.

Hacker stole $ 1,200 worth Ethereum in under 100 seconds

After a malicious bot tied himself to his wallet, he began to redirect all incoming ETH in a similar way, effectively turning the heist into hostage – because there was no traditional way to release tokens due to the lack of funds to pay for gas. Despite this, eventually the owners managed to release the bad kitties.

While some may blame such situations only for lack of personal cyber security situations, individual users should not make such mistakes.

As mentioned earlier, a group of bona fide hackers recently discovered that two crypto exchanges accidentally exposed the private keys of thousands of users, and the total amount was over $ 18 million.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton he is the editor-in-chief of the news portal. Blockchain is love.

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