Developer suffers R$7.2 million in cryptocurrency hack and advises that everyone will be targeted in future hacks, as he was. Get to know how this hack unveiled crypto risks.
One of the most well-known developers has just lost R$7.2 million in cryptocurrency to a complex social engineering scheme. The developer disclosed on X (previously Twitter) that the breach was a series of well-planned breaches over an extended period of time.
Source – X
He explained that the hack was fair and square and thinks such an attack reveals a much bigger threat that all crypto users will have in the near future.
According to the developer, this event provides a close preview of the future attack surface of cryptocurrency security.
Developer Exposes Flaws in Crypto Security
The hacker used a decentralized exchange protocol in THORChain to exchange stolen assets silently. Notwithstanding calls upon the protocol to interfere and abate the transactions, nothing was done.
The developer denounced centralized and closed-source wallets that possess censorship functions and discriminate against users.
He stressed that protocols such as THORChain ought to be agnostic to prevent this kind of intrusion.
His experience led to the development of Vultisig, which is an open-source wallet that was created to be more secure.
He encouraged users to build it out of source so that they were not dependent on third-party affiliates.
Warning to All Crypto Holders
The developer cautioned the crypto fraternity that everybody stands to lose the same kind of attack unless security is enhanced.
His defeat is an indication that social engineering and protocol vulnerabilities can ruin investors.
He told the story to many people to create awareness and that he is working on developing solutions such as Vultisig to combat any future attacks. As he puts it what had befallen him is being befallen to everyone.
The event highlights that transparent wallets and strong security in the area of decentralized finance are urgently necessary.
It points to the way attackers exploit sophisticated techniques to evade existing mitigations.
This instance is in a direct posting by the developer on X as to his hack and his intentions. The increasing frequency of sophisticated attacks mandates all crypto participants to remain vigilant at all times.
