Bitcoin Gold Wallet That Stole Private Keys Scooped $3.3 Million

By in Blockchain News on November 23, 2017
  • Last week it emerged that a fake BTG wallet which had been promoted on the bitcoin gold website was fraudulent.
  • The team’s developers removed “mybtgwallet” once the scam came to light, but not before scores of innocent users had been duped.

Kai Sedgwick writes (key points selected):

Last week it emerged that a fake BTG wallet which had been promoted on the bitcoin gold website was fraudulent.

The team’s developers removed “mybtgwallet” once the scam came to light, but not before scores of innocent users had been duped.

See also: Bitcoin Gold Addresses ‘Scam’ Wallet and Premine Endowment Process The website containing the fake wallet, which encouraged users to upload their private keys and claim their free bitcoin gold, has since been purged, but an archived version can still be viewed: The average user, visiting the bitcoin gold website which contained a link to mybtgwallet, would have had no way of knowing that the wallet was a trap.

The BTG team also tweeted links to the wallet and reassured users that it was safe to use, leading to some out-of-pocket individuals to call the whole affair a conspiracy.

The bitcoin gold team also stand accused of being slow to act once the scam came to light, with a team member stating last week: Those claims would appear to have been wholly accurate.

In total, $3 million of bitcoin, $107,000 of bitcoin gold, $72,000 of litecoin and $30,000 of ethereum was swiped by the entity behind mybtgwallet.

The wallet was supposedly open source, but the code was later updated on Github, enabling the private keys from users to be sent directly to the mybtgwallet scammer.

A statement released by the bitcoin gold team said: The BTG team are expected to provide a further update in the coming days.

After the extent of the mybtgwallet hack came to light, one previous beneficiary of forked coins – Bitmain’s Jihan Wu – had this to say: With every passing fork, the birth of bitcoin cash is starting to look like a textbook case in how to fork a coin.

Despite the negative publicity surrounding bitcoin gold, the price of the virtual currency has climbed sharply this week along with its fellow fork bitcoin cash.

Read the full article: https://news.bitcoin.com/bitcoin-gold-wallet-stole-private-keys-scooped-3-3-million/

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