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Crypto

Experienced Crypto Investor who Lost $1.7M in Hot Wallet Hack Reveals How It Happened

The founder of a DeFi venture fund has lost more than $1.7 million as a result of his hot wallet being targeted in a daring attack. He has also warned that even sophisticated and experienced users are at risk of exploits and anyone could be the next victim.

Arthur Cheong, the founder of DeFiance Capital — also popularly known as Arthur_0x on Twitter — confirmed that many of his NFTs were stolen due to the malicious hack, and they’re now being advertised for sale on OpenSea. He explained:

“Was pretty careful and stuck with only using hardware wallet on PC until I started trading NFTs more regularly. Hot wallets on mobile phones are indeed not safe enough.”

Arthur_0x went further to strike an aggressive tone against the person who was responsible for the hack and theft as he added: 

“”The only thing I can say to the hacker is: you mess with the wrong person.”

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bitcoin

Sharing the details of the incident on Twitter, he publicly shared the wallet address that had been compromised — and urged his followers to blacklist the address. Records on Etherscan also show that more than 130 ETH has been transferred to the hacker’s address in recent hours.

Cheong highlighted that the exploitation of his hot wallets was “pretty scary” as the hacker was able to gain access to separate wallets with different seed phrases — proving it didn’t appear to be an issue with MetaMask. He added:

“Well this hit me hard, but if I got exploited as a fairly sophisticated 5 years crypto user (DeFi user, password manager, mostly hardware wallet) I’m not sure how I can persuade most normal people to put a substantial part of their networth onchain anymore.”

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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