Crypto investors are always on the lookout for ways to secure their precious digital assets. For fear of rug pulls or fraudulent transactions from centralized exchanges, many have resorted to self-custody solutions. However, self-custody does not guarantee one hundred percent security. A Reddit user was baffled when he found out that his Bitcoin was swiped from his wallet, even though he took a lot of precautions to safeguard his keys.
The Story Behind the Crypto Mystery
A Redditor with the user name jdmcnair posted his experience on the popular media platform. He said that he is keeping his Bitcoin in a self-custody wallet because he believes that it is one of the safest ways to secure his crypto. He generated his keys using walletgenerator.net over a year ago. The keys were exported to a pdf file and printed out. The printouts were kept in a tamper-proof container that was stored inside a vault. He funded the wallet once and did not do other transactions.
The amount was not too big, but the Reddit user still felt deflated because of the incident. He asked the opinion of other Reddit users about what could have been the weak points in his security protocol.
Some people pointed out that the website he used to generate his keys is the culprit and pointed out that it was sold in 2017 and nobody should assume that it was ever safe. Somebody pointed to an article that cautions users of walletgenerator.net. According to the writer:
“There were changes to the code being served via WalletGenerator.net that resulted in duplicate keypairs being provided to users. These generated keypairs were also potentially stored server-side.”
He advises that anyone who used the site to generate keys after August 17, 2018, should move their assets. He also noted that the malicious code cannot be found after May 24, 2019, but could be reintroduced at any time.
Weak Points of a Paper Wallet
A paper wallet is a printed piece of paper containing keys for crypto transactions. Since they are stored offline it was once considered a safe way of storing assets. However, it has its drawbacks.
- It is susceptible to theft or damage. It can be stolen, destroyed, or degraded.
- Malware or spyware. If a user prints his wallet via an infected device like a computer or printer, the malware could capture the keys and send them to bad actors.
- Fake or compromised sites. Bad actors can create a fake or hack a website. Keys generated from these sites could create invalid keys or send them to attackers.
- User mistake. A user could misplace printed keys. A printed key can also be ineligible and a user can mistakenly send funds to the wrong address.
Crypto Users Should Always Be Vigilant
Crypto has become a target for criminals because of its increasing value and ease of transport. A single hacked account could yield a big payday for anybody. The use of a self-custody wallet has become popular because of the crypto contagion that happened in 2022. Crypto investors are now afraid that their assets will disappear due to fraudulent activities in centralized platforms. The saying “not your keys, not your crypto” has been the guiding mantra for a lot of digital asset owners.
However, we must always remember that criminals will always adapt to the current technology. They will find ways to get around securities. Instead of lock picking, these bad actors are resorting to more sophisticated tools. Being vigilant is the key. Keeping ourselves informed and keeping our wits is probably the best way to keep our crypto safe.
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