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Twitter Users Question Luke Dashjr’s Wallet Security Practice

  • Prominent Bitcoin developer Luke Dashjr lost approximately 200 BTC in a hack.

  • There are many possibilities as to what caused the attack, including the use of backdoored software on a desktop.

  • The hack sparked a debate in the crypto community over the privacy of crypto wallets.

  • In terms of hacks, 2022 was a terrible year, with nearly $3 billion lost.

Twitter Users Questi

The crypto sector has become more of a playground for hackers

And scammers in the last few years, and it is important to highlight that 2022 was probably the worst year for the industry. However, it appears that the trend of crypto attacks will continue in 2023 as well.

As a result, one of Bitcoin's early developers, Luke Dashjr, revealed on January 01 that he had lost $3.6 million in a hack. Dashjr stated that his PGP key had been compromised and that he had no idea how this happened. He also revealed that the hacker used CoinJoin to conceal the funds' whereabouts.

The PGP (Pretty Good Privacy) encryption technology is widely used and provides users with both public and private keys. Of course, the latter is solely known to the specific user.

As per reports, Dashjr appears to have lost approximately 216 BTC, a significant amount of Bitcoin for an individual. Later in the Twitter conversation, he warned people not to download Bitcoin Knots, which is a full Bitcoin client. 

Meanwhile, some speculated that the compromise was the result of an earlier server breach. Others speculated that this was a "boating accident," a method for people to avoid paying taxes by saying the assets were lost.

Luke Dashjr is a well-known figure in the Bitcoin developer community due to his numerous contributions. In 2011, he began contributing to Bitcoin's security and performance, among other things.

How Crypto Community Reacts?

Members of the cryptocurrency community expressed their concerns over how a Bitcoin core developer recognized for his security awareness might be compromised. Some argue that this makes it harder for ordinary people to adopt and secure Bitcoin.

A Twitter user expressed disbelief at the news, assuming that few people would be able to assist the developer and that "there's little chance for most."

Other members of the community mirrored the view, emphasizing that if it could happen to Dashjr, it would be "no nope" for their grandma. A Twitter user also added the term "mass adoption" to the discussion. They argue that if a leading Bitcoin developer can't keep his wallet secure, widespread adoption is a "pipe dream."

Meanwhile, Bitcoin analyst Namcios feels that these emotions do not reflect the true state of affairs. The analyst emphasized that just because Dashjr has a high degree of Bitcoin knowledge does not imply he cannot make mistakes.

Moreover, Binance CEO Changpeng Zhao also responded to the post, saying the exchange's security team would keep an eye on the situation. He vowed to freeze the funds if they were to be transferred to Binance. 

Several other prominent figures in the crypto industry, like Ava Labs founder and CEO Emin Gun Sirer and crypto journalist Laura Shin, joined the conversation, largely to express their condolences.

Security Concerns are Increasing

Crypto hacks continue to affect the market, with 2022 being a particularly difficult year in this regard. The total sum lost due to cyberattacks reaches $3 billion in 2022. This indicates that security measures are urgently needed to safeguard the crypto community from such hacks.

Meanwhile, Dashjr’s wallet hack announcement has sparked a debate regarding self-custody, which grew popular following the collapse of FTX last year. As a result, concerns about using a self-custody wallet to hold cryptocurrencies increase. This implies that concerns regarding safeguarding private keys will be addressed soon, as the majority of crypto investors currently hold the majority of their funds in self-custodial wallets.

What are your thoughts on the wallet hack of one of the earlier bitcoin security developers? Didi the event create a FOMO in the market regarding using self-custody wallets for crypto holdings? Please share your valuable thoughts in the comment section below.

Read also: Vitalik Is Bullish On ‘Ethereum Killer’: Understanding Why?

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