Crypto Users Face Hacks & Legal Issues
12 posts across 3 communities in the last 90 days; 83% from r/CryptoCurrency.
“The network is 24/7 365 being attacked at speeds beyond human biology. I don't see an issue, any network vulnerable to that is not worth existing (beyon a school homework or something like that)”
“I suppose I didn't consider that, but wouldn't having your seed words save you from such a problem?”
“...my man, you ever hear of viruses and hacks? You fucked up on sec ops somewhere then. Was it on a notepad? Email? Cloud storage? You should never be storing seed phrases on the SAME DEVICE. That's like having a locked door with the key less than 3m away under a floormat or…”
Several users are reporting being hacked and experiencing legal problems within the cryptocurrency space. This highlights concerns around security vulnerabilities, seed phrase management, and potential exploitation by lawyers or other malicious actors.
SOURCES (23)
“...my man, you ever hear of viruses and hacks? You fucked up on sec ops somewhere then. Was it on a notepad? Email? Cloud storage? You should never be storing seed phrases on the SAME DEVICE. That's like having a locked door with the key…”
“Crytpo was never a thing, it was made a thing by people looking to use it as illegal means. Not sure why it’s hard for some to understand what it was intended for, get over yourselves, the tulip crash is coming.”
“I heard the data breech exposed a massive crack in their security. Thank you. I’ll see myself out.”
“Right, and companies would take full advantage of knowing how much money you have. There’s so much too exploit.”
“No, it won't. More people's information got leaked from Ledger, including mine, and nothing has happened. Yeah, it sucks, but you guys are blowing this out of proportion lol.”
“Might not prevent the $5 wrench attack, but how would they know about a passphrase wallet? Thats kinda the point...”
“It seems you didn't really read OPs post. The coins are not at risk. Only user data like addresses, email etc..”
“How hard can it be to stamp some words in metal and NOT give them to strangers? In real life the same counts! Would you give your passport to a stranger? Would you give your Pincode to a stranger? Would you give anything other than just a dollar to a random stranger? Why would this be different online or on the phone?”
“Pretty much. If anyone disagrees replace the hw wallet and pin with $10,000 in $100 notes and see if your opinion changes.”
“The network is 24/7 365 being attacked at speeds beyond human biology. I don't see an issue, any network vulnerable to that is not worth existing (beyon a school homework or something like that)”
“This reminds me of https://libraryofbabel.info/ It's got every 3200 character text block combination contained within, and you can randomly browse it. Every single possible seed phrase should be in there as well.”
“We are not cavemen brother nobody is guessing at random. You can't bring Bitcoin a godlike technology and then argue its safety by saying if we count at random. Nowadays hackers limit the randomness by targeting wallets that have a balance. And they use some next level techniques including deploying ai.”
“Crypto isn't a being that is subject to laws but you most certainly are. If your neighbor kept their HW wallet on a desk and the PIN on a sticky note it doesn't matter that their opsec was terrible, if you take it and they can prove it was you then you bet your ass you're going to court and likely prison. It's accurate to say that it's easier to commit anonymous financial crime with crypto, i.e. if a north Korean hacking group found your plaintext seed or a telephone scammer”
“Local ordinances can mean that just because you gain access to a wallet key, it doesn’t give you ownership of the value inside. Crypto still exists within a society.”
“I think the more interesting conversation here is how hackers would be deterred. If someone steals enough bitcoin, it will become worthless, and they wont be able to sell it because their wont be any buyers if the protocol is truly compromised. I call it the "Schrodinger's Bitcoin Hacker". Also, I think this situation massively benefits exchanges like Coinbase/Kraken/etc, as people will more likely leave their coins on exchanges. Additionally, there are people who are hired by comp”
“Maybe self custody isn’t for you? Always have to do your own due diligence and research and protect your keys. You can be like me and instead of having all of your bitcoin on one seed and one device you split it up between devices and seeds and even use multi sig. It is a bummer and has definitely given us a speed bump but in reality it’s only going to make things more secure by making wallet developers understand they need to constantly evolve to better secure their devices and to not overlook”
“Yes. Imagine telling the masses that if they lose this 12 word plus passphrase they are SOL on their money. That’s not even mentioning not being able to store it on your phone or any of the other common mistakes that people make. I mean shit, a couple hundred thousand Americans per year lose their passport. The security requirements are just too high and too complex. And another post I said imagine having to explain and teach Grandma how to self custody, or even non-self custody in a somewhat se”
“At this point, we do what due diligence we can. Everything is hackable to some extent”
“Huh? Not even sure what "web 3" is, and sure, if someone gains physical access to your dongle then it is indeed vulnerable, but I'd rather extend my risk in that direction than some exchange staffed by socially failed geeks (thinking SBF here).”