Blockchain Backer Twitter View on Crypto Hack
The Blockchain Backer Twitter feed was bound to have an opinion on a recent multi-million dollar crypto hack, and it didn't disappoint.
Blockchain analysis researchers have traced the large quantity of cryptocurrency stolen last month from the Ronin network bridge to the North Korean hacking group Lazarus. The hackers stole large amounts of the Ethereum currency and USDC stable coins totaling $540 million at the time.
It is believed that North Korean cybercriminals targeted multiple organisations in the blockchain technology and cryptocurrency industry. The hacks started with phishing messages to employees on various communication platforms. High-paying jobs were offered to coerce the potential victim to download cryptocurrency applications that contain malware.
Sky Mavis is looking to recover 173,600 Ethereum and $25.5 million from the hackers. The attackers zoned in on the bridge to Ronin blockchain, which acts as an intermediary between Axie Infinity and blockchains such as Ethereum. Where users deposit Ethereum or USDC to Ronin and then purchase non-fungible token items or currency within the game. They can also sell their in-game assets and withdraw the money.
The attackers used hacked private security keys to compromise the network nodes that validate transfers to and from the Ronin blockchain.
After compromising four of Sky Mavis’ nodes, the attacker exploited them to get access to one managed by the community-owned Axie DAO.
This allowed them to override any transaction security and withdraw whatever funds they liked.
Bitcoin Backer Twitter View
The hack could not have been prevented as the hackers used the features of the chain and the ability to vote against it, according to Charlie Shrem, Blockchain Backer, on Twitter. He tweeted this to his 250k followers on Twitter, where he interviews and regularly discusses the impact of Bitcoin and Blockchain.
On Blockchain Backer Twitter, Shrem recommends that people do not save screenshots or text files of their passwords and private keys on their computers, as hackers can scan them without them knowing. In his opinion, password managers are a better option for your accounts as you can create randomized passwords without remembering them all!
Shrem founded BitInstant in 2011, a platform that allows the exchange of dollars into Bitcoin. It operated until 2013 and gained more than 700,000 followers. At a point, it was processing nearly 30% of all Bitcoin transactions.
In December 2014, Shrem was sent to prison for indirectly sending $1 million in Bitcoin to Silk Road. Shrem is considered a Bitcoin evangelist for how he brought Bitcoin to the mainstream.
Cold storage is seen as more secure as your crypto will be on an encrypted flash drive. So, if a thief wants them, they’ll have to steal the physical device. You can also enable two-factor authentication (2FA) on your accounts. Then a thief would need not just your password, but to gain access to your mobile phone. If hackers gain access, you can receive your access code by downloading an app that is a hardware key designed for 2FA.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.