A Bitcoin investor made an investment of 1,400 Bitcoin while trying to use the old version of the popular cryptocurrency wallet Electrum. The investor, whom hackers attacked by exploiting a vulnerability, has lost about $16 million as of today.
Bitcoin, one of the popular investment tools, can be the subject of our news from time to time with various hacking attempts and thefts. This time, we are here again with such a development. An investor stole 1,400 Bitcoins as a result of a small mistake. Approximately $16 million worth of Bitcoin has been in the wallet of hackers for some time.
If you are dealing with Bitcoin, you may have heard of the cryptocurrency wallet named “Electrum”. The virtual wallet preferred by many users allows you to keep your cryptocurrencies out of the stock market. However, a mistake made by an investor while downloading Electrum caused him a huge financial loss. So how did the investor make this mistake?
The investor tries to use it by downloading an older version of Electrum. The investor, who sees a message that the version is old when he logs in to the application, also tries to update the application when he sees the statement that the application needs to be updated. However, the unfortunate investor, who later realizes that the message he sees is not true, is investing 1,400 Bitcoin in this process. Remarks on the subject came from Ben Kaufman, who was working as a software engineer.
Kaufman states that the Electrum wallet works by connecting to one of the servers on the list. Saying that anyone can run a server for the Electrum wallet, Kaufman states that some users randomly connect to these servers. Stating that error messages can be published due to an error that occurs during a transaction, the software engineer states that the hackers also stole 1,400 Bitcoins from the investor using this error message.
According to Kaufman, versions of Electrum prior to v3.3.3 provided error messages sent to users in free text. Here hackers exploited this vulnerability in older versions of Electrum. The hackers, who sent a fake message to the unfortunate investor, managed to steal the Bitcoins from the account.
Another statement on the subject came from Binance CEO Changpeng Zhao. Zhao explained that this is not the first time, there are dozens of people like investors who lost 1,400 Bitcoin. Stating that they also blacklisted the account from which the Bitcoins were withdrawn, the Binance CEO will freeze the account if Bitcoin comes to the stock market from this account.