If you’re using a very old Bitcoin Knots, Don’t upgrade it says Luke Dashjr

In recent on Dec. 31 Bitcoin core developer Luke Dashjr lost his all Bitcoin holding because his PGP key was compromised.

On Jan 1 at 6:30 UTC Dashjr stated on Twitter that his PGP  key has been compromised, resulting in many bitcoins being stolen. PGP (Pretty Good Privacy) key is a common security method that uses two keys to unlock information that has been encrypted.

PSA: My PGP key is compromised, and at least many of my bitcoins stolen. I have no idea how. Help please. #Bitcoin

— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) January 1, 2023

In this Twitter thread, he shared the hackers’ wallet address where his Bitcoins were sent, but he did not reveal how much he owns. After seeing this wallet’s on-chain data, we can see the hackers stole $216 BTC, which is worth more than $3.6 million.

According to Blockchain.com, this address has been transacted 7 times on the Bitcoin blockchain. It has received a total of 216.93331465 BTC which is worth $3,628,535 USD and has sent a total of 0.00000000 BTC. The current value of this address is 216.93331465 BTC $3.6 million.

So the core developer blame is Bitcoin Knots isn’t infested with malware. he also suggesting to shutting down the system if you download Bitcoin Knots.

That's how you might verify that your Bitcoin Knots or Core download isn't infested with malware.

So to be clear: DO NOT DOWNLOAD BITCOIN KNOTS AND TRUST IT UNTIL THIS IS RESOLVED.
If you already did in the last few months, consider shutting that system down for now.

— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) January 2, 2023

In a recent Tweet, Luke again warns users about Bitcoin Knots “If you’re using a very old #Bitcoin Knots, it might expire today. Don’t upgrade it.”

If you're using a very old #Bitcoin Knots, it might expire today.
Don't upgrade it.

Instead, add to your bitcoin.conf file:

softwareexpiry=0

Or just wait to upgrade and use it until the dust settles.

— @LukeDashjr@BitcoinHackers.org on Mastodon (@LukeDashjr) January 2, 2023

Twitter folks full charge of this event CZ Binance again blame self custody as not risk-free so let’s see some interesting tweets after this developing story.

Tweets After Luke Dashjr threads

So first CZ Binance is already statemented against self-custody in which he says 99% of lost his saving in hardware wallets, now Bitcoin Core developer key is compromised So CZ has a great opportunity to gain sympathy.

So firstly Zhao comments to gain sympathy like Sorry to see you lose so much. Informed our security team to monitor. If it comes our way, we will freeze it.” he said 

Sorry to see you lose so much. Informed our security team to monitor. If it comes our way, we will freeze it. If there is anything else we can help with, please let us know. We deal with these often, and have Law Enforcement (LE) relationships worldwide.

— CZ 🔶 Binance (@cz_binance) January 1, 2023

Then he played master stock after the above tweet his next tweet in which he said “Self custody have a different set of risks.”

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

So joe CEO of LunarCrush respond on a CZ tweet that said “$3.5 million lost to self-custody in 2022. Billions lost to centralized exchanges.”

Zhao also replies to joe tweet: “Most self-custody losses are not reported.”

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

Zhao also mentions SBF is not full of a centralized exchange and also compares Madoff which also does not equal all Stock Brokers

So, here are some more funning tweets that will completely blow your mind.

Bitoinfool a Twitter user said “While having over 200BTC. Says that the hackers got his hot and cold wallets, despite suggesting that he doesn’t use cold wallets in his deleted tweet. Very strange indeed.”

This tweet literally can’t stop me from laughing LOL

Him asking for funding was ok in my book, but while having over 200 btc? Disingenuous? I’m not sure, but odd… https://t.co/QHfJL6UFBi

— HAL (@BitcoinHal) January 2, 2023

The next tweet is very sensible I think we link to this article

Some people claiming that the 200 BTC didn't all belong to @LukeDashjr, rather they were coinjoined to one address and only part of that balance belonged to Luke

Anyone know if this is true? https://t.co/MQoN746qIj

— Δrchon (@bitarchon) January 2, 2023

Wrapping UP

This story directly belongs to the self-custody and bitcoin security so crypto Avanza keeps eye on it but one thing to keep in mind this is not the failure of self-custody, but the timing of this news is very painful because everyone is finding the hardware wallet of self custody this is very hurtful for crypto folks