QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
UNKNOWN
JANUARY 2022
GLOBAL
LITEVAULT
DESCRIPTION OF EVENTS
"Welcome to LiteVault - The trustless online wallet for litecoin." "Your wallet is encrypted before it touches our servers. Unlike other Litecoin wallet services, we NEVER see your private keys, and are unable to access your funds."
"Litevault is an online wallet service which uses in-browser cryptography to reduce the risk of the coin operator running with the funds. This same system is used by Blockchain.info - a well known online Bitcoin wallet (UNAFFILIATED WITH LITEVAULT)."
Litevault was made by Someguy123: "I am a trusted website developer within the Litecoin community responsible for various services including the Litecoin Block Explorer, and administrating various official Litecoin resources such as the Wiki and IRC. I feel Litecoin hasn’t had enough backing or support, so this is my contribution."
"When you login to LiteVault, your browser sends your identifier to our server, we return an encrypted version of your wallet with the AES algorithm, your browser then decrypts this using your password (which is never sent to the server) to load your private keys used to sign transactions."
"I had a bit of LTC in an old Litecoin wallet but the service is no longer available. Looks like the domain expired on 01/01/2022 and someone else has bought it. I completely forgot about it until the conversation came up and I was going to move it out today. Store your coins in hardware wallets, folks!"
"Whoever was running it has the coins, but I wouldn't use the website again if it ever comes up unless the original owner comes out to say he put it back up."
LiteVault was a web wallet set up by someone named someguy123. It didn't manage private keys but rather gave users a secure way to generate them from the username and password (similar to blockchain.info). The service operated for several years before the domain name expired on January 1st, 2022. At this point, recovery of funds would require reconstructing the wallets using the source code. It's unclear what amount of funds remain stuck due to the level of technical which would be necessary to recover them.
HOW COULD THIS HAVE BEEN PREVENTED?
In general, to avoid this issue, you want to be sure that you have a full backup of your seed phrase in a standard format like BIP39.
Web wallets are generally not a good idea to secure a large quantity of funds for a wide variety of other reasons. Keep the vast majority of funds stored offline.
Litevault gone : litecoin (May 30)
LiteVault - Secure Litecoin Web Wallet (Jun 30)
GitHub - Someguy123/LiteVault: LiteVault - Secure Online Litecoin Wallet https://www.litevault.net (Jun 30)
About LiteVault (Jun 30)
litevault.net (Jun 30)
