This Whale Lost 1,155 BTC, Here's How to Avoid It by U.Today

U.Today – The best way to avoid losing 1155 BTC is obviously not to own it in the first place. But if you are the lucky owner of a large amount of cryptocurrency, security should be your top priority. Unfortunately, this whale was not as cautious as it should have been.

On the afternoon of May 3, Beijing time, a whale mistakenly transferred 1,155 BTC to a phishing wallet address, worth around $71 million at the time. This significant loss serves as a stark reminder of the importance of security in the world of cryptocurrencies.

The hacker monitored the whale's blockchain activity and watched as the whale created a new address. The hacker then generated an address similar to the one he created the whale and made a small transaction to include this phishing address in the transaction history. When the whale saw the phishing address in his transfer history, he mistakenly copied it, thinking it was his own address. The hacker monitored the phishing address and upon receiving 1,155 BTC, quickly transferred the funds to a new address.

This incident shows that the hacker was well prepared and used significant computational power, which likely indicates an organized effort rather than an individual effort. The speed and precision of the attack suggest that automated scripts were used and that the hacker had access to considerable resources.

To protect your digital assets, create private keys and mnemonic phrases offline and store them securely offline. Use hardware wallets for added security, but be sure to back up your private keys.

If you suspect that your private key or mnemonic phrase has been compromised, replace it immediately and transfer your assets. Save transfer addresses in an address book with notes and avoid copying addresses temporarily. Always make small test transfers and confirm success with the recipient before large transactions.

For large transfers, consider breaking them into several smaller transactions. Avoid clicking on transfer links or online transactions sent by others and always verify links and addresses independently. For larger fund management, consider using multi-signature methods to add an extra layer of security.

This article was originally published on U.Today.