Bitcoin (BTC) Luke Dashjr, one of its main developers, has reportedly lost a large number of Bitcoins in a recent incident.
Dashjr stated on Twitter that his PGP key was compromised and “many” of his Bitcoins were stolen.
The developer also reported that some of his stolen coins were processed through CoinJoin. Dashjr expressed his disappointment with the FBI and IC3, the agencies responsible for investigating cybercrime, and stated that he could not reach anyone from these institutions.
PSA: My PGP key is compromised, and at least many of my bitcoins stolen. I have no idea how. Help please. #Bitcoin
— @[email protected] on Mastodon (@LukeDashjr) January 1, 2023
Binance CEO Changpeng Zhao Offers to Help Bitcoin Developer
Binance CEO Changpeng Zhao (CZ) also responded on Twitter, expressing regret over the news and offering to do whatever he can to help.
CZ stated that self-hiding of Bitcoins carries its own risks and Binance will try to monitor the situation and see if there are any ways they can help.
Sad to see even an OG #Bitcoin Core Developer lost 200+ BTC ($3.5 million). Self custody have a different set of risks.
We will try to monitor and see where we can help. 🙏 https://t.co/9eGZ7AFgC2
— CZ 🔶 Binance (@cz_binance) January 1, 2023
The exact amount of stolen Bitcoins has not been confirmed, but the loss is estimated at over $3.5 million at current market prices. This is a significant loss for Dashjr, who is known in the crypto community as an early adopter and advocate of Bitcoin.
This event highlights the importance of securely storing and transporting cryptocurrencies, especially for those holding large amounts of cryptocurrencies.
While self-custodial can offer more control and autonomy, it also carries additional risks that may not be available when using a reputable exchange or other third-party custodian. It is important for cryptocurrency holders to carefully consider the balances and choose the storage method that best meets their needs.
In response to Luke Dashjr’s tweets, Binance CEO Changpeng Zhao (CZ) offered his condolences and support.
CZ stated that he informed the Binance security team to monitor the situation and that the stolen Bitcoins will be frozen if they enter the exchange. CZ also emphasized that Binance has established relationships with law enforcement around the world and offers to assist in any way they can.
Following the news of Luke Dashjr’s loss of Bitcoin, a user tweeted to CZ that $ 3.5 million was lost in 2022 due to self-hiding, but billions of dollars were lost on centralized exchanges.
Most self custody losses are not reported.
On 2nd point, SBF does not equal to all centralized exchanges. As Madoff does not equal to all Stock Brokers.
— CZ 🔶 Binance (@cz_binance) January 1, 2023
CZ responded to this tweet, stating that “many of the self-retention losses go unreported,” suggesting that the actual amount lost through self-retention may be higher.
CZ also pointed out that losses on one centralized exchange do not represent the losses of all centralized exchanges, referring to the SBF. Comparing the situation to the Madoff investment scandal, he noted that the actions of a stockbroker do not reflect the actions of the entire industry.
*Not investment advice.
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