An unknown exploit that drains well-secured “OG” cryptocurrency wallets has recently come to light, which is claimed to have resulted in the loss of over $10.5 million in non-fungible tokens (NFTs) and other crypto assets since December 2022.
The mysterious crypto wallet exploit allegedly targets experienced community members who were thought to be “reasonably secure.” The developer of MetaMask, Taylor Monahan, first brought attention to the issue and warned that the security issue is different from typical phishing attempts or random scams. What’s so peculiar about the exploit is that it specifically has its sights on old wallets instead of new ones. In other words, it targets users who are already experienced in securing their crypto assets.
Distinct Features of the OG Crypto Wallet Exploit
Monahan noted that no one understands how the exploit works yet, but some of its features are known. The exploit targets keys created from 2014 to 2022 and users who are more “crypto native” or those with multiple addresses and who work within the space. The developer suggested that users with their assets linked to one private key should take action to enhance their security measures. These include transferring their funds to other accounts, separating their assets, or utilizing a hardware wallet.
Hardware Wallets as a Solution
Cointelegraph advises that those holding over $1,000 for more than a week should move their funds to a hardware wallet, which serves as a long-term solution to dodge the exploit. A hardware wallet is a physical device that stores digital assets offline and requires a user’s approval before any transactions can be made. This makes it much more difficult for hackers to access funds, as they cannot gain access without physical access to the wallet.
Increasing Crypto Phishing Attacks
The rise of this exploit comes at a time when phishing attacks are also on the rise. Cybersecurity and antivirus provider Kaspersky has reported over 5 million crypto phishing attacks in 2022, a 40% increase from 2021 when they detected around 3.5 million attacks. Phishing is a type of scam where attackers try to obtain sensitive information, such as passwords or credit card details, by pretending to be a trustworthy source. They may send emails, text messages, or make phone calls to trick their victims into giving up their personal information.
Final Thoughts
This crypto wallet exploit is a reminder that even the most experienced members of the cryptocurrency community are not immune to attacks. So, it is essential for one to take extra steps to safeguard his/her digital assets.
Cold wallets, particularly hardware wallets, can help prevent users from falling victim to wallet-draining exploits such as the one uncovered recently. By storing private keys offline and requiring a PIN to access, cold wallets provide an extra layer of security. Furthermore, they allow users to store their assets separately, thereby reducing the likelihood of a single hack compromising all of their digital assets.
Other foreseen solutions include splitting up one’s crypto assets or migrating funds to a more secure platform. With phishing attacks on the rise, it is also crucial to be vigilant and wary of any suspicious activity or requests for personal information.
By taking these steps, users can reduce their risk of falling victim to cybercrime and protect their digital assets.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager of a consultancy firm.
