Last week it emerged that a fake BTG wallet which had been promoted on the bitcoin gold website was fraudulent. The team’s developers removed “mybtgwallet” once the scam came to light, but not before scores of innocent users had been duped. The total amount of cryptocurrency lost to the fraud has now been totted up – and it comes to a whopping $3.3 million.
The website containing the fake wallet, which encouraged users to upload their private keys and claim their free bitcoin gold, has since been purged, but an archived version can still be viewed:
The average user, visiting the bitcoin gold website which contained a link to mybtgwallet, would have had no way of knowing that the wallet was a trap. The BTG team also tweeted links to the wallet and reassured users that it was safe to use, leading to some out-of-pocket individuals to call the whole affair a conspiracy. The successful heist of over $3 million of cryptocurrency raises serious questions, not only about the diligence of the BTG team, but the obligations of developers as a whole.
This week, it also emerged that $7 million worth of the Verge altcoin had been stolen from Coinpouch, an iOS wallet which had also been promoted on the Verge website. Should developers be compelled to inspect the code for third party wallets before promoting them? The average user lacks the technical nous to check for malicious code, but the same cannot be said of cryptocurrency devs. The bitcoin gold team also stand accused of being slow to act once the scam came to light, with a team member stating last week: […]