A Bitcoin investor known on Twitter as “Rick” has shared a traumatic experience that serves as a warning about the digital security risks associated with storing cryptocurrencies.
In a message on X (Twitter) he revealed that he had lost around 25 bitcoins, worth R$4.5 million at today’s price – a fortune he claims has been amassed since 2012.
According to the report, he used the KeePassa password manager known for its robust security, to save your Bitcoin wallet password.
The investor still doesn’t know exactly how he was hacked, but experts trying to unravel the case suggest that the KeePass security was compromised by a weak passwordeasily broken by brute force attacks.
Fellow plebs….
Dad and I found out yesterday that we had been hacked and lost ALL #bitcoin
> 25 BTC hoddled since 2012 😢
No words to describe this feeling.
Particularly heartbreaking that I am writing this from our first father/son pilgrimage there #ElSalvador 😔
Devastating. FUCK pic.twitter.com/x5PHWrU9yG
— ⚡Rick⚡ (@RMessitt) November 11, 2023
The KeePass file was saved to Rick’s hard drive, which apparently automatically synced to the cloud, a default setting on many Windows installations.
Automatic cloud sync may have created a path for the hacker to access the KeePass file. Once he had the file, the attacker likely used a brute force attack to crack the weak password and gain access to the Bitcoin wallet keys.
In addition to the weak password vulnerability, security experts suggest that the hacker may have accessed your email data and reset your passwords via recovery texts or emails.
I’m devastated
Rick explained that he used KeePass to store the seed phrases for his Bitcoin wallet. He emphasizes that KeePass is not a centralized service like LastPass, and that the password to access it existed only in his and his father’s minds.
However, he acknowledges that the password to access KeePass was weak, which he now realizes is insufficient in terms of complexity and security.
On a video On Twitter, Rick raised the possibility that a keylogger captured the password as he typed it, giving the hacker access to the KeePass file and thus the Bitcoin wallet passphrases.
He also mentions the possibility that he may have been a victim of cell phone cloning (SIM swapping), but admits that he is unsure how exactly the attack occurred.
Right. I verified Twitter so I could post a video.
Pardon the profanity and chatter. pic.twitter.com/FwCONwgLf5
— ⚡Rick⚡ (@RMessitt) November 11, 2023
The investor said he was aware of the benefits of hardware wallets and had even used one in the past, but expressed frustration and regret that he had become complacent and opted not to use a physical wallet to store his bitcoins to beat.
Rick also expressed outrage at those who accused him of being a scammer, but also thanked those offering help. He emphasized the importance of using hardware wallets and the urgency of moving cryptocurrency assets to cold storage, away from internet-connected devices.
In Brazil, these types of wallets can be purchased on the KriptoBr website and are highly recommended by security experts.
The video ends with Rick advising the Bitcoin community to learn from their mistake and take immediate action to protect their assets. He acknowledges the severity of the situation and the pain that both he and his father are experiencing, but also expresses his determination to overcome the incident and improve his safety practices.
How to protect cryptocurrencies?
The incident is just one of thousands occurring day after day in the cryptocurrency market, with many investors losing assets by storing them in unrecommended locations.
The event also highlights the importance of strict security practices when managing cryptocurrencies.
For those who cannot purchase a physical wallet, the combination of a strong password, disabling automatic sync with cloud services, using two-factor authentication, and being vigilant against phishing are essential to protect investments.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
