Brazilian cryptocurrency streamer crypto fraternity is one of the latest victims of insecure self-custody practices, reportedly losing thousands of dollars in private key mishaps.
During a live YouTube broadcast on August 29th, crypto fraternity channel, ivan bianco, inadvertently exposed The private key to his self-custody cryptocurrency wallet.
During a livestream related to Bitcoin (BTC) and blockchain gaming, Bianco apparently attempted to access the passwords for his blockchain gaming platform, Gala Games, through a text file on his computer.
Unfortunately for the streamer, his Gala Games password was stored in the same text file as the seed phrase for his MetaMask wallet, which has a large number of Polygon’s MATIC (MATIC).
Shortly after accidentally opening the text file, which exposed two private keys to his cryptocurrency wallet, Bianco shut down the stream, but apparently, it was too late for the streamer to recover the funds.
crypto fraternity then here we go A new live stream claims that one of his viewers managed to access his MetaMask wallet with a private key and stole his entire Polygon stash of 86,000 MATIC. At the time of the accident, this amount was approximately $50,000.
“I accidentally showed my private key live, and the guy sent it to another address quickly. I tried to turn off the broadcast and send the cryptocurrency to another address, but it was too late,” Bianco said in a statement. said in an emotional video after the accident.
In the video, the host if A link to the Polygon address of the unknown perpetrator. Subsequently, the collection of 86,000 MATIC began to be transferred between different addresses.
Bianco claimed he lost his life savings in the accident and begged livestream viewers to return their money in exchange for rewards. The YouTuber also said he planned to file a complaint with local police, noting that around 70 people were watching his unfortunate livestream.
According to some online sources, crypto fraternity He may have managed to recover at least some of his funds so far.Local cryptocurrency executive Guilherme Rennó posted on X (formerly Twitter) on Aug. 30 Report Rumor has it that Bianco eventually managed to get “most of the money” back.
related: 7 Ways to Securely Store Your Private Keys
“Self-custody requires extreme care,” the executive noted, adding that cryptocurrency users should never store their seeds and passwords on a computer or in an easily accessible place.
When it comes to cryptocurrency self-custody, nothing is more important than the security of your private keys. It is crucial to be very careful when handling private keys or seed phrases, and for some it may be a better idea to opt for a custodial solution such as an exchange. Cryptocurrency enthusiasts advise investors to diversify the types of cryptocurrency storage to prevent the loss of life savings.
While self-custody essentially allows users to “be their own bank,” this method of holding cryptocurrencies is still prone to a number of risks, such as theft, destruction, or loss. “Not your keys, not your coins” is a popular saying in the cryptocurrency community that warns users of such risks. According to cryptocurrency rules, once a user of a self-service wallet exposes his private key to others, the former is no longer the owner of the funds.
Bookmark this article as an NFT Preserve this moment in history and show your support for independent journalism in the cryptocurrency space.
Magazine: How to Protect Your Cryptocurrency in a Volatile Market – Engagement from Bitcoin OG and Experts
Svlook
