Vitalik Buterin Warns of Crypto Losses Due to Forgotten Passwords, Software Bugs, and Lost Devices

The co-founder of Ethereum recently issued a strong reminder on his social media account regarding the risk of crypto holders.

Vitalik Buterin, the co-founder of Ethereum, recently issued a strong reminder on his social media handle about the risk crypto holders face. While much of the focus has been on theft and hacking, Buterin stressed that many individuals lose crypto due to forgotten passwords, software bugs, and lost devices.

Crypto holders are losing crypto to loss rather than theft. There's also no attacker to identify and the victims aren't talking because they feel too ashamed to do so. We need strong wallet security solutions that account for such loss modes as crypto adoption increases. Buterin on Crypto Security: Beyond Hacking

Buterin's statement comes in response to the chance for loss rather than theft. He highlighted various ways individuals can lose access to their digital assets. These include losing a device with wallet data, forgetting passwords, or even encountering software bugs that result in funds becoming inaccessible.

The conversation around security also gained traction after Mask Network CEO Suji Yan revealed that his wallet had been hacked. The attack, which resulted in the theft of over $4 million in crypto, took place within minutes and occurred just hours after Yan's birthday celebration.

I turned 29 yrs old today, 6 hours ago. Around 3 hours ago – one of my public wallet I carried on my phone was hacked and 4m$+ assets was stolen. All the stolen tx seems manual and span 11+ mins. So either the private key was leaked same day as my birthday and hacker manual tsf… https://t.co/SkuIb2nrPf

— Suji Yan (@SujiYan) August 16, 2023

Yan suspects the attack may have been due to a private key leak or an offline attack while his phone was unattended during the gathering. Yan's suspicion stems from the brief time his phone was left unattended, even though he trusted the people at the event.

The stolen funds, which included Ethereum (ETH), WETH, MASK, and Tether, were quickly transferred to new addresses and converted into Ethereum before being split across multiple wallets.

Crypto Market Downturn: Trump Policies and Security Fears

In other news, the crypto market is facing significant losses. According to Financial Times, the general crypto’s market capitalization has declined by about $810 billion since its January peak.

Bitcoin, the leading cryptocurrency, has seen a decrease of more than 22% in value this month, with its price falling below $80K.

This decline follows growing anxiety among traders over U.S. President Donald Trump's slower-than-expected adoption of pro-crypto policies, but these anticipations have not materialized.

Meanwhile, concerns about Trump's trade policies and tariffs have further dampened the spirits of crypto market participants, causing many to reassess their expectations regarding future regulatory changes.

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