Bitcoin wallet is in danger of loosing funds

sokani

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Quote from: Mpamaegbu on August 22, 2023, 10:53:52 AM

I merely pointed your attention to what you said about open source wallets being infallible

You're right, no wallet is infallible but the chances of security breaches in open source wallets are very slim because many eyes are looking through the codes to minimize the risk. But you would agree with me that even when a wallet is open source the owner has a role to play in keeping his wallet secured. The breach in security of the case you mentioned looks like carelessness from the part of the user.

Quote from: dzungmobile on August 21, 2023, 10:31:13 PM

I have never known about this wallet and because of such, I believe it is not a famous wallet so I would have more doubt on its quality and security. Even if I had known about it, I would have not used it.

Libbitcoin Explorer is not a wallet, it is a tool that can be used to generate seed phrase and it is those wallets that are at the risks of being compromised like Cake wallet, Trust wallet, Airbitz, BitBrim and other applications. Although the article pointed that it's open source but other persons have contradictory views.

Charles-Tim

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Quote from: Mpamaegbu on August 22, 2023, 10:53:52 AM

Guy, relax. I know what this thread is about. Stop sounding like anyone is derailing it. I merely pointed your attention to what you said about open source wallets being infallible (as you've always maintained). I don't know why you're being pedantic on that now. Ciao.

You do not understand me at all. Go and read about Libbitcoin explorer and the reason I linked it to close source wallets not to be trusted. I will not be surprised if you have not followed any of the related threads that Libbitcoin explorer was discussed on this forum.

Mpamaegbu

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Quote from: Charles-Tim on August 22, 2023, 09:49:56 AM

Quote from: Mpamaegbu on August 22, 2023, 08:48:31 AM

~.

This thread is not about an online wallet. It is about Libbitcoin explorer generating seed phrase insecurely which resulted to many users wallet that were compromised.

Guy, relax. I know what this thread is about. Stop sounding like anyone is derailing it. I merely pointed your attention to what you said about open source wallets being infallible (as you've always maintained). I don't know why you're being unnecessarily pedantic on that harmless post of mine now. Ciao.

Charles-Tim

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Quote from: Mpamaegbu on August 22, 2023, 08:48:31 AM

Oh, really? It's not about open source wallet, I know but isn't Electrum an open source wallet anymore?

Electrum is completely open source. Although, I know it is a rhetorical question.

Quote from: Mpamaegbu on August 22, 2023, 08:48:31 AM

I'm just trying to point out the vulnerability of everything online (wallets included). Whether we admit it or not here, you and I know that cyber security begins with humans and not the apps the press.

This thread is not about an online wallet. It is about Libbitcoin explorer generating seed phrase insecurely which resulted to many users wallet that were compromised.

Even if you use Libbitcoin explorer to generate seed phrase offline, it is not safe and the seed phrase can be compromised.

Mpamaegbu

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Quote from: Charles-Tim on August 22, 2023, 05:33:03 AM

Quote from: Mpamaegbu on August 22, 2023, 04:37:59 AM

~snipped~

I was the first person that posted on that thread.

Oh yeah my bad.

Quote

The issue is not about open source wallets at all. The issue is not even about Electrum wallet because it was not a vulnerability on Electrum that led to the loss of money but it is about the user's carelessness.

Oh, really? It's not about open source wallet, I know but isn't Electrum an open source wallet anymore? We can find the victim mentioning it was an Electrum wallet he used in the whole post even though he acknowledged his slip (not as if he denied it), so what happened that the wallet still got hacked even though he never exposed his PP or password to that wallet to anyone? Electrum isn't the absolute too. Anyway, this isn't a back and forth thing with you. I'm just trying to point out the vulnerability of everything online (wallets included). Whether we admit it or not here, you and I know that cyber security begins with humans and not the apps the press.

Jon_Hodl

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This is exactly why I roll my own entropy and use a completely air-gapped hardware wallet signing device to move any sats. It's a lot of work but I will never have to worry about my funds being compromised by bad privacy/security practices used by trusted third-parties.

It's a sad day to hear this for the victims that used Libbitcoin's explorer but this is why us plebs constantly harp all about not your keys, not your coins and cold storage so much.

348Judah

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Quote from: tech30338 on August 21, 2023, 09:25:17 PM

Have you read the news regarding bitcoin disappearing from wallets? also the milk sad?

Not at all, maybe this was coming in lately.

Quote from: tech30338 on August 21, 2023, 09:25:17 PM

Its called Milk Sad because the wallet seeds are Milk Sad, this new issues where they can guess the seed phrase.
Libbitcoin explorer - This was develop by group of developers as an alternative to bitcoin core, this has lots of features like contacting blockchain, and creating keys.

Are you really saying that the blockchain technology has it protocols being manipulated by the community of developers or what, once you understand the process to how your private and public keys are generated, you wouldn't think of anyone guessing our seeds in other to steal away our asset, 12 or 24 seed phrase is not what can be easily guessed except the owner leave them vulnerable.

Quote from: tech30338 on August 21, 2023, 09:25:17 PM

Turnout that the hackers have find a way to expose or have a way to hack the seed
its estimated that 2600+ wallets are in danger by these issue, and other wallet is also endanger like trust wallet and cake.

Know the right source to download your wallet, secure your keys and forget about any other things people are saying all around the world.

Charles-Tim

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Quote from: Mpamaegbu on August 22, 2023, 04:37:59 AM

Nothing is ever cast in stone. There's no perfect system or situation anywhere in this world. When people canvass for open source wallets as if those are the next best thing discovered after Bitcoin, I'm quick to remind them of uncertainties that can also happen with such wallets too. I'm sure you came across the I've been hacked (Electrum 4.3.2) sad story of julerz12. To even say it happened with Electrum means there's no wallet that's safe.

I was the first person that posted on that thread. The issue is not about open source wallets at all. The issue is not even about Electrum wallet because it was not a vulnerability on Electrum that led to the loss of money but it is about the user's carelessness.

This is very different from what that happened to bx which is called Libbitcoin explorer. You can read the two links that I provided above to understand about the vulnerability and the reason nit to use close source wallets.

Mpamaegbu

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Quote from: Charles-Tim on August 22, 2023, 02:10:10 AM

This is another example that you should avoid those close source wallets that you do not know how they are generating seed phrase.

Use an open source wallet that are reputed and that use a secure and well random means of generating entropy.

Nothing is ever cast in stone. There's no perfect system or situation anywhere in this world. When people canvass for open source wallets as if those are the next best thing discovered after Bitcoin, I'm quick to remind them of uncertainties that can also happen with such wallets too. I'm sure you came across the I've been hacked (Electrum 4.3.2) sad story of julerz12. To even say it happened with Electrum means there's no wallet that's safe. If you haven't read that story, here's an opportunity to do so. In a manner of speaking, I can pointedly tell you that our safety (the security of our funds online) greatly depends on us, not on a random fellow online who sits in a remote place developing some concepts or apps. The first in this line of safety is to never chase every new concepts and apps we find online just so we can sound woke. I, for one, won't subscribe to such wallets or apps not so much talked about; to start with. The stuff OP is talking about is relatively unknown. Why would anyone fancy their chances with it.

aylabadia05

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Quote from: tech30338 on August 21, 2023, 09:25:17 PM

Have you read the news regarding bitcoin disappearing from wallets? also the milk sad?

I've read and followed the discussion about Libbitcoin explorer even though I didn't know about Libbitcoin before the incident that was shared by cygan.

Quote from: tech30338 on August 21, 2023, 09:25:17 PM

What are your thoughts about this new vulnerabilities?

Those who are still using closed source wallets need to immediately switch to an open source wallet that has been tested with a large number of users so that it will be the real choice without a second thought.

Charles-Tim

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Quote from: tech30338 on August 21, 2023, 09:25:17 PM

What are your thoughts about this new vulnerabilities?

Libbitcoin explorer issue was raised on two threads on this forum when the vulnerability was known as funds were stolen from the people that uses the wallet to generate seed phrase.

[WARNING] Wallets created with Libbitcoin Explorer (bx) are insecure!
If you used "bx seed" you probably already lost your bitcoins, but if...

This is another example that you should avoid those close source wallets that you do not know how they are generating seed phrase.

Use an open source wallet that are reputed and that use a secure and well random means of generating entropy.

GeorgeJohn

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Quote from: Faisal2202 on August 22, 2023, 12:32:42 AM

This issue is already discussed a lot in the development sections of the Bitcoin board. But still, Most of the newcomers and people who do not like to test new theories are safe from this because they did not use Libbit's any product. So, I think that's why the number of wallets that are in danger is that less. But still, before testing out new projects we should be more careful with out assets so try to use only small amount in such scenarios.

Actually you advice is very nice, and secondly hackers are the elements of this, because they desperate of penetrating to our wallet, but what I want to say in nutshell is that this particular issue of disappearing coin in the wallet we can seen it for long time ago, I don't know maybe newbie have come across to it and that is while op created another thread related to it. But since I notice what's bitcoin I have not seen anyone complained of the bitcoin been lost or disappear from it's wallet. Sometimes you can misplaced your seed phrase and something of this nature can happen at any point in time.

Patrol69

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I have heard this kind of news several times about Bitcoin disappearing from my wallet. Due to the interference of various hackers usually the access to one's wallet goes into the hands of the hackers due to which the hackers transfer all the funds from their wallet without their knowledge. Sometimes it can happen due to our mistakes. Many times different fraudsters lure a member with different amounts of money due to which when a member who is lured by money connects his wallet to the website of the hackers, the access to the wallet is automatically transferred to the hands of the hackers due to which the hackers take all the money from the wallet to their own wallet. We should always choose secure wallets to keep BTC. By choosing a secure wallet and not sharing any information about your wallet with anyone else, you can protect your BTC from all these unwanted events.

Faisal2202

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This issue is already discussed a lot in the development sections of the Bitcoin board. But still, Most of the newcomers and people who do not like to test new theories are safe from this because they did not use Libbit's any product. So, I think that's why the number of wallets that are in danger is that less. But still, before testing out new projects we should be more careful with out assets so try to use only small amount in such scenarios.

ImThour

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A crypto/web3 developer commented on this: “This is not a bug in BX or Libbitcoin, It is reckless wallet development.”
So according to his statement, theres an issue in the way wallet development was done. Wallet development is basically creating new wallets for users who register on the platforms.
Source: https://twitter.com/evoskuil/status/1688657656620167169

It has also affected some more blockchains like Ethereum, Solana etc.

Despairo

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There was a thread created about this discussion [WARNING] Wallets created with Libbitcoin Explorer (bx) are insecure!

It's not all Bitcoin wallet are in danger, but it's just user who create a wallet using Libbitcoin explorer or other site that use Libbitcoin's source code.

You can read the vulnerability that found by an user in this forum.

In short Libbitcoin is using a weak 32 bits entropy while the current wallet already use 128/256 bits which is way higher secure and randomized.

dzungmobile

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Quote from: tech30338 on August 21, 2023, 09:25:17 PM

Have you read the news regarding bitcoin disappearing from wallets? also the milk sad?
Its called Milk Sad because the wallet seeds are Milk Sad, this new issues where they can guess the seed phrase.

I have never known about this wallet and because of such, I believe it is not a famous wallet so I would have more doubt on its quality and security. Even if I had known about it, I would have not used it.

Quote from: https://cointelegraph.com/news/newly-discovered-bitcoin-wallet-loophole-let-hackers-steal-funds-slow-mist

Libbitcoin is a Bitcoin wallet implementation that developers and validators sometimes use to create Bitcoin and other cryptocurrency accounts. According to its official website, it is used by “Airbitz (mobile wallet), Bitprim (developer interface), Blockchain Commons (decentralized wallet identity), Cancoin (decentralized exchange)” and other applications.

Not sure what other applications are but I don't know about aforementioned applications.

Quote

What are your thoughts about this new vulnerabilities?

Lesson is to stay away from new wallet software or infamous wallet software which have yet been tested enough by community or hackers.

Nwada001

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This really appears to be serious, as a lot of wallets are in danger if this happens to be the case. There might be a lot of funds already lost that are yet to be accounted for. Just take a look at the time at which the exploit was said to take place: "July 12." This has been going on for more than a month now, and it's just coming up. If this has been going on without anyone's notice, then the said 900,000 dollars might just be a little figure compared to what has been stolen so far.

About the statement quoted below: do most of the wallets that are popularly used make use of BX or Libbitcoin?

Quote

I have been informed by the folks at http://distrust.co that they have filed a CVE against Libbitcoin. Apparently, a wallet product used a BX command in a manner explicitly warned against. This is not a bug in BX or Libbitcoin; it is reckless wallet development.

Source

If yes, then anyone using a wallet that is in any way related to or connected to BX or Libbitcoin and is yet to be affected should make a move and transfer any funds they have into a safe wallet without waiting to confirm how vulnerable this has been and who is affected or who is not. It's better to act now than regret later.

tech30338

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Have you read the news regarding bitcoin disappearing from wallets? also the milk sad?
Its called Milk Sad because the wallet seeds are Milk Sad, this new issues where they can guess the seed phrase.
Libbitcoin explorer - This was develop by group of developers as an alternative to bitcoin core, this has lots of features like contacting blockchain, and creating keys.
Turnout that the hackers have find a way to expose or have a way to hack the seed
its estimated that 2600+ wallets are in danger by these issue, and other wallet is also endanger like trust wallet and cake.
Here is the link of the issue:
https://www.coindesk.com/tech/2023/08/14/disappearance-of-900k-puts-focus-on-vintage-bitcoin-project-libbitcoin/
hope this helps everyone.
What are your thoughts about this new vulnerabilities?

Topic: Bitcoin wallet is in danger of loosing funds (Read 198 times)