The “Blockchain Bandit” moved $172M ETH after two years, exposing weak private keys and sparking crypto security concerns.
The infamous “Blockchain Bandit” is back in action, moving a massive $172 million in Ether (ETH) after a two-year break. On December 30, the hacker transferred 51,000 ETH from 10 different wallets to a single multi-signature address, consolidating the stolen funds. The transfers happened in batches of 5,000 ETH between 8:54 pm and 9:18 pm UTC.
The funds had been untouched since January 2023, when the Bandit also moved 470 Bitcoin (BTC). This hacker first made waves by using a method called “Ethercombing,” where they exploited weak private keys by guessing them with faulty code and random number generators. In total, the Bandit managed to crack 732 private keys, linked to over 49,000 transactions, according to blockchain investigator ZachXBT.
Experts in crypto security are very vocal on their concerns about the risks associated with vulnerable private key creation. Weaker random number generators can make it easy for hackers to copy keys and access wallets. The rise in bitcoin thefts coincides with the Blockchain Bandit’s comeback, with billions stolen in the last year alone.
To stop these assaults that target centralized exchanges and custodial platforms, experts are encouraging cryptocurrency users and platforms to bolster security with better key management, cold wallets, and regular system audits.
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