“An ounce of prevention is worth a pound of cure.”

-Benjamin Franklin

It’s safe to say Ben Franklin wasn’t thinking about cryptocurrency when he advised fellow Philidelphians that an “ounce of prevention is worth a pound of cure.” Almost 300 years later, this phrase from our unwitting Founding Father couldn’t be more relevant in the digital currency market.

Of course, you’ve read stories of financial loss due to various scams and hacks. Even as recently as today, news of a crypto-targeted attack is spreading throughout the financial market.

crypto takes a new hit as thousands of solana wallets hacked

Late Tuesday night, an attack that drained more than $8 Million was executed on the Solana ecosystem. Hackers were able to successfully acquire permissions that allowed the ability to sign-in, initiate, and approve transactions from over 8,000 mobile wallet accounts.

A Pound of Cure

In order to cure anything, you must first identify the cause. So far, Solana has identified affected wallets as “hot” wallet users with addresses either created, imported, or used in Slope mobile wallet applications.

Blockchain security firm OtterSec has asked affected users to fill out a form, in an attempt to gather as much data as possible on the breach. So far, four addresses have been identified in connection to the theft.

So, how do Solana’s mobile wallet customers recover their crypto funds?

In the spirit of keeping it simple: they don’t.

solana tweet

Victims of the attack are said to be “hot” wallets users. Unlike “cold” wallets, which are hardware-based and have no online connection, software-based “hot” wallets are software wallets connected to the internet. While these online wallets do offer private and public key security, their connection to the internet still leaves them vulnerable to hacks.

While there have been odd-tales of hackers returning stolen crypto-currency, victims of crypto theft have a low chance of stolen funds being recovered and returned to their rightful wallets.

In the Wild West, a common practice for capturing thieves and other criminals was to set a bounty. Citizens were promised a reward in exchange for helping capture outlaws.

For years, the crypto market has been referred to as an online Wild West. So it’s only befitting that the digital currency industry has adopted the use of cyber Bounty Hunters to help recover stolen digital currency.

Even with the help of a skilled Bounty Hunter, recovery is still not guaranteed.

An Ounce of Prevention

Solanas Blockchain exploitation is a grave reminder to investors still storing their crypto in “hot” wallets.

When Daily Crypto Hunter launched in November 2021, one of the first things we needed our readers to know was how to keep their crypto safe. Whether you’re a new reader, happened to miss it, or are just ready for a recap – our very own Chris Campbell detailed one of the leading hard wallets, while explaining wallet security:

“It’s one of the simplest and most secure ways to hold your crypto private keys offline -- far from the potential perils of “hot” (online) wallets and hacker-targeted centralized exchanges.”

Avoiding Scammers

Aside from wallets being directly targeted by hackers, scammers will target individuals to exploit private information and gain access to individual wallets. The best way to avoid falling victim to these scams is to stay educated and vigilant.

When contacted by an organization, do not click the links they provide.

Use your web browser to visit the company’s website or download their secure app directly.

Be sure sites you do visit are secure and encrypted.

A simple technique to determine whether an exchange website is secure is to look for the “S” in their web address. Secure addresses will begin with “https” and any exchange site beginning with “http” should be seen as a red-flag. This is the same for wallet sites.

Avoid any scenario that asks for you to send crypto in order to receive crypto.

Here we have a sure sign of a Ponzi-scheme. You’re asked to send funds first because they are being used to pay prior “investors.” It is unlikely that you will find yourself in the position of an early investor, who benefits from later victims misfortune.

Keep reading Daily Crypto Hunter.

We bring you the top minds in finance and technology for a reason! Do not wait for mainstream media to tell you how to stay safe after your assets are attacked. Stay ahead of the fraud with your FREE Daily Crypto Hunter subscription.

Carpe Crypto,

Matt Insley
Publisher, Daily Crypto Hunter

Archive

Date

Keep Your Crypto Safe

Posted August 03, 2022

Crypto Buzz: Crypto Fund Inflows Peak → Securities, or Investment Contracts? → (And More...)

Posted August 01, 2022