Hackers Target Bitcoin Ordinals Founder, Stealing Over $300K

Bitcoin Ordinals, a new form of digital collectible inscribed on the Bitcoin blockchain, have become a tempting target for hackers. In a recent incident, the founder of the Ordinal Rugs project lost over $300,000 worth of Ordinals and Bitcoin due to a phishing attack. The hack highlights the growing threat of cyberattacks targeting cryptocurrency wallets, particularly those holding rare and valuable digital assets.

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Hackers Target Ordinal Rugs Founder, Stealing $311,199 in Bitcoin and Ordinal Inscriptions

The Ordinal Rugs founder has reported a hack that resulted in the theft of 1.47 BTC ($103,003) and 4 BTC ($208,196) worth of Ordinal inscriptions. The incident highlights the growing threat to Bitcoin wallets as Ordinals gain popularity.

Ordinals: A Hotbed for Scammers

Ordinals have emerged as a popular collectible on the Bitcoin blockchain, with over 63 million inscriptions minted to date. The trend has attracted hackers, with a Dune Analytics report indicating that hackers have stolen around $450 million in fees.

Archon Suffers Wallet Drain

Archon, the pseudonymous founder of Ordinal Rugs, admitted to being careless in implementing security controls despite claiming to take operational security seriously. The hacker exploited a malicious link sent to members of the Bitcoin Rock Discord server, using a fake Magic Eden NFT website to steal Archon's NFTs.

Cyberattacks on Crypto Wallets: A Common Occurrence

Cyberattacks targeting crypto wallets are prevalent, with celebrities and influencers frequently becoming targets. The Ethereum and Solana blockchains have historically been the focus of such attacks, but Ordinals' popularity has made Bitcoin wallets a new target.

Phishing: The Hacker's Weapon

The Bitcoin Rock Discord hack employed phishing, a technique involving deceptive emails, websites, or social media to steal sensitive information or assets. Archon's trust in the Discord server and its administrator led him to click on the malicious link and sign the transaction, enabling the theft.

Due Diligence and FOMO Fuel Collector Errors

Blockchain security firm Halborn attributes collectors' mistakes to a lack of due diligence and fear of missing out (FOMO). Social engineering and phishing tactics, such as the message sent to the Bitcoin Rock Discord, can exploit collectors' eagerness to acquire NFTs.

Vigilance and Precaution for Wallet Users

Halborn COO David Schwed emphasizes the importance of vigilance and double-checking website URLs when connecting wallets to external sites. Plugins and browser extensions can alert users to fake domains and newly registered domains.

Legacy Wallets Lead in Security Features

While new wallets emerge to support Ordinals, they may lack the security features of established NFT-friendly wallets like MetaMask and Phantom. Veteran providers offer features such as Blockaid and malicious attack alerts that newer wallets may not have.

Hackers Exploit Security Gaps

Schwed highlights that some wallets have built-in security measures, while others lack them. Metamask's integration of Blockaid last year demonstrates the focus on security by established providers. While many newer wallets may specialize in smart contracts, their vulnerability to BTC-related attacks remains a concern.

Stay Informed and Protect Your Assets

Stay updated on the latest crypto news and security measures to protect your assets from malicious actors. The rise of Ordinals has made Bitcoin wallets a target for hackers, and vigilance and precaution are paramount to safeguarding your investments.