Rich in crypto and paranoia – the threats that raise security issues in the world of bitcoin

Rich in crypto and paranoia – the threats that raise security issues in the world of bitcoin

<Grumpynitis>, as known on Reddit, thought he had taken all precautions to protect his bitcoin portfolio.

Eventually, he worked as a security consultant at banks, governments and multinationals. He knows how to avoid hackers. Then he read about armed robberies. And about abductions. And about descents. He got into bitcoin paranoia, as he himself recognizes.
Paranoia bitcoin – He continued to see his usual job and realized the new threats facing the community.

“It makes you wonder what might happen someday,” he wrote. Shaken, he began to take action that he did not believe in the past to be needed.

That should alert non-experts. With the increase of cryptomonas, many users have been enriched. As a result, targets have been made for offenders, both online and in the real world.

Several investors are alerted and are trying to be as anonymous as possible. Just like Grumpy (who for obvious reasons did not give his identity), they do their best to protect their coins and safety in general.

However, there are fears that many users are not very cautious about the dangers.

The dangers of Paul Lerner, director of the Exmo Finance exchange, who was kidnapped in December and released after a $ 1 million redemption in bitcoin was paid, best illustrates the dangers.

Last autumn, the New York authorities spoke of the armed robbery of someone with $ 1.8 million in the ether.

A thorough inspection

In the past, Grumpy stored his private cryptomon password using an ingenious strategy and putting it in an encrypted vault in a blank file. But he went to Ledger Nano S, a hardware wallet.

“Storing your private password in a safe is a good idea for cold storage, but when you want to use your wallet you have to expose your passwords to your PC,” Grumpy said.

A device such as Ledger, on the other hand, keeps private keys … private, even when you connect it to an Internet computer. The wallet only sends a signed message.

Grumpy has not taken any risks. After receiving his wallet in his mail, he let him examine the faces. Also checked the signatures generated by the device.

“That’s to be 99.99% sure the device is original and no one has walked to it,” he explained.

This level of care shows how great personal responsibility is in the crypto world.

“It’s like moving from a secured apartment to a home where you’re responsible for your own security,” said William Mougayar, author and investor.

Most consumers, he said, have not yet made a step forward in the new reality that demands not only new talents and knowledge but also self-discipline.

“An eight-letter password you have in your head is not enough,” says Mougayar.
Two-factor authentication, multi-signature arrangements, safely stored wallets, hardware devices such as Ledger, PINs, and recovery phrases are now basics.

All of this is too complicated for the average consumer, says Mougayar.

“I hope we will see more user-friendly methods to manage security and anonymity in the new crypto world. The security that any regular user can provide is a challenge in the industry. Once improved, cryptomonas will have adoption. Security and usability can and should coexist.

Beyond all these measures, users will have to learn the importance of discretion.

Asked why he thinks someone would recognize how many cryptomonas he has, Grigg replied in a Twitter post: “People in the bitcoin world are still too proud to realize it’s a bad idea to respond.”

Planting seeds

After studying his Ledger wallet, Grumpy generated the mummified phrase (seed) on the device.

It’s a phrase that never saw the light of the computer monitor. He has 24 words that he has written on three sheets of paper. Each paper contains 16 words.

Grumpy stored the three sheets in safe places outside the house in envelopes to show if anyone had walked to them. Any two of these sheets can be used to rebuild the seed. Some people know where they are stored.

“One sheet has no value, I do not have to worry about the theft.”

All of this makes the Ledger wallet look like a device that needs a lot of maintenance, but it has sold well lately.

Attacks with “rubber hose”

Just like Grumpy, who was actually awakened by news of the attacks, Jameson Lopp said he opened his eyes after breaking his house, but also the armed robbery in which the victim was lured into a van and threatened with a gun .

Lopp says this incident is “an attack with a rubber hose.” Even if it does not mean that the victim was beaten with the hose, the effect is the same.

It has been the constant target in online since it became known as a passionate voice in the crypto community. “The fact that I brought this into the visual world also made me realize that I was on a new level and that I had to worry about all sorts of dubious people who threaten me in real life,” Lopp said, an interview.

The engineer said that he is now practicing physical security practices and that he has invested time and resources in a few changes to calm him down.

He did not say what he was talking about, but advised those interested in studying home protection.

In a post on Medium in 2014, Lopp suggested the cold storage solution that requires more different individuals to have access. He recommended paper wallets with shared access, Shamir’s Secret Sharing algorithm, or storage of goods in multi-sig addresses.

Moreover, he acknowledges that he trained in body-to-body fighting, knife and firearms.

“There are no problems specific to crypto space. Physical security is a well-understood issue that prominent people take into account, “he explained. But he said there are some who will have to hire bodyguards to be safe.

Grumpynitis does not go that far, but thinks in perspective.

If one of the envelopes is stolen or damaged, it is a sign that they must immediately move the funds. But if he dies, he has some trusted knowledge that can rebuild the seed and recover the funds.

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