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BTC Developer Loses 200 BTCs In Hack

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BTC Developer Loses 200 BTCs In Hack

One of the core developers of Bitcoin, Luke Dashjr, has claimed that he lost almost his entire Bitcoin holding on December 31.

PGP Keys Compromised

Bitcoin core developer Luke Dashjr revealed that he lost over 200 BTCs when his wallet was compromised just before the new year. Dashjr addressed the community via a Twitter post, stating that a PGP key compromise resulted in the loss of his funds. He stated that the alleged hackers had somehow gained control of his Pretty Good Privacy (PGP) key and accessed his wallet. The PGP key system is a common security method with encrypted information hidden behind two private keys. 

Dashjr tweeted, 

“PSA: My server was accessed this morning by an unknown person. Full analysis in progress, but take extra care that you PGP-verified any downloads.”

Dashjr also tweeted a wallet address to which some of the stolen Bitcoin had been sent. Even though he did not disclose the total amount stolen, the wallet address he reported has received four transactions between the hours of 2:08 and 2:16 pm UTC on Dec. 31. These transaction amounts totaled 216.93 BTC, which is worth $3.6 million at current prices.

Twitter And Reddit Sleuths At Work

When a Twitter user asked what the connection with PGP was, Dashjr responded, 

“That’s how you might verify that your Bitcoin Knots or Core download isn’t infested with malware. So to be clear: DO NOT DOWNLOAD BITCOIN KNOTS AND TRUST IT UNTIL THIS IS RESOLVED. If you already did in the last few months, consider shutting that system down for now.”

He addressed another user on Twitter and revealed that he had only noticed the hack after getting emails from Coinbase and Kraken about login attempts. Even though Dashjr claimed that he did not know how the hackers gained access to his key, some Twitter users have pointed out a potential connection with a previous Twitter post from him. On November 17, Dashjr tweeted about his server being undermined by “new malware/indirect accesses on the framework.” 

CZ Expresses Condolences

A Reddit user has suggested that Dashjr did not take the November 17 security breach seriously enough and failed to take measures to separate his different activities. According to this user, Dashjr kept his hot wallet on the same computer that he used for all his other activities. 

The event has come to the attention of Binance CEO Changpeng Zhao, who tweeted, 

“Sorry to see you lose so much. Informed our security team to monitor. If it comes our way, we will freeze it. If there is anything else we can help with, please let us know. We deal with these often, and have Law Enforcement (LE) relationships worldwide.” 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Piere Stevenson

Amara is a graduate in Business Management, and has been following the world of crypto since 2019. Having a keen eye for detail, Amara enjoys finding breaking stories via Twitter, official press releases and website blog posts. Outside of crypto, Amara enjoys rock climbing, dancing and spending time with her siblings.

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