On 4chan , a simple image-based bulletin board designed to operate as a forum , an anonymous user claimed to have a seed to his friend’s Electrum Bitcoin wallet. He then asked the community for a method to steal funds of the wallet equivalent to 70 Bitcoins.
Seed or wallet words to a Bitcoin wallet like Electrum or Multibit is an important component necessary to back up funds. If a user accidentally deletes wallet information or has his computer stolen , the user can locate his wallet words or seed to recover his funds.
However , the Multibit development team strictly warned its users against leaving wallet words or seed exposed.
The team stated:
“To restore your wallet and recover your Bitcoin , you must have your wallet words. With your wallet words , you can recover your Bitcoin. You must keep your wallet words safe because anyone who knows your wallet words can steal your Bitcoin.”
With two simple steps , anyone that holds a seed or wallet words to a Bitcoin wallet can steal funds. The first step is to obtain the seed. Then , once the wallet backup folder is located on the computer , using the seed , funds , notes , payment history and exchange rates in payments can all be stolen without a trace.
The importance of security
On the 4chan bulletin board discussion , an anonymous user explained to the community that he found the seed to his friend’s Electrum wallet.
The user wrote:
“I have a seed to a friend’s Electrum wallet with 70+ Bitcoins. He left his wallet at my house when he went to drop something off at his girlfriend’s. Went through it and found a piece of paper which was clearly a seed. Given he has shown me his Bitcoin on an Electrum wallet , I’m 99 percent sure it is that. Wrote it down and put it back where I found it.”
For localized Bitcoin wallets , seed or wallet words is the most important security component to protect. With one string of words , as seen in the image above , 70 Bitcoins can be lost. By today’s exchange rate , as of May 1 , 2017 , the wallet owner’s clumsy and irresponsible action to store seed words in a public place will cost him at least $99 ,330. The anonymous user noted that they could be more funds stored within the wallet.
This unfortunate event and the loss of 70 Bitcoins should be considered as a reminder for the rest of the Bitcoin community to implement appropriate security measures and keep seed words safely.
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