A Chinese investor has fallen victim to SIM hacking, enabling the hacker to steal cryptocurrencies worth more than $45 million.
According to Dovey Wan, a crypto analyst, probing into the incident tweeted,
BCH address :qzumak2rvxksjgkjuxe2fe5jxatktlsnhy5sthr5p7
THIS IS REALLY BRUTAL
The Chinese investor, Zhoujianfu who had his Bitcoin Cash [BCH] and Bitcoin [BTC] stolen sought help from BCH miners in reversing the transaction at about 3 confirmations. Nevertheless, it looks like it went through anyway with 12 confirmations at press time.
In a subsequent post, he also notes losing $15 million in Bitcoin [BTC],
Also for what it’s worth, they got $15M in BTC too.. https://explorer.bitcoin.com/btc/address/1Edu4yBtfAKwGGsQSa45euTSAG6A2Zbone
Roger Ver, the leading proponent for Bitcoin Cash [BCH] explains in the thread what might have happened,
When they steal your phone number used for 2FA. This is usually done by social engineering the phone company.
SMS/message or e-mail based 2-Factor Authentication are prone to be hacked through central servers and also hardware theft. Cold storage for large amounts is one of best ways to secure one’s coin, with the passphrase can be memorized or kept in a secret location.
For redemption, Zhoujianfu can possibily sue the SIM provider for lapses in its security or negligence. However, in case of personal negligence (stolen SIM), the liability falls on to the investor alone.
How potent a threat is SIM hacking for the cryptocurrencies? Please share your views with us.
*Earlier Wan reported 1Million BCH hack which was later corrected to 100k
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com