Blockchain.com Funds Stolen Truth-Seeker1990

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Blockchain.info

Reddit user Truth-Seeker1990 used the Blockchain.com online wallet, which offers a "2FA" account recovery option based on the user's email account. His email address was hacked (which typically may happen due to reusing the same password as a login for a website). The hacker modified his email account to forward and remove sensitive email messages. He then "recovered" the blockchain.com account and withdrew all the funds ($7k) stored there. The funds were subsequently sent through different mixing services, making tracking very difficult.

This is a global/international case not involving a specific country.

About Blockchain.info

"The world’s most popular crypto wallet. Over 80 million wallets created to buy, sell, and earn crypto." "As they say, not your keys, not your crypto. Blockchain.com Private Key Wallets are the most widely-used wallets for self-custody of your crypto. We make it easy for people who are ready to control their private keys to hold them with a Secret Private Key Recovery Phrase." "When it comes to ensuring that your crypto is secure, we think about every last detail so you don’t have to."

"The popular Blockchain website primarily offers market data and serves as the main block chain explorer for the bitcoin currency. However, users can also create web-based wallets to send and receive bitcoins."

"[I']ve just had my blockchain wallet hacked for £5300 that [I] had been saving for 3 years." "[A]ll my cryptos that [I] had been saving for 3-4 years had been stolen days before [I] bought a trezor wallet all because blockchain has no security process for someone wanting to reset the 2FA rendering 2FA absolutely useless if a hacker hacks your email." "[I] was literally about to buy a cold wallet days before being hacked and ive had them on blockchain for 3-4 years with no problem but right at the very moment its hacked."

"I have proton mail with 2FA." "I understand blockchain completely. [I] just never thought 2FA could have been hacked without my phone, not knowing someone can just hack my email and request my blockchain exchange accounts 2FA to be reset."

"[I] do not suggest using it if you want your Cryptos to be safe. I really now just realize how much [I] hate the internet and how it can let some slimy little cowardly rob you of your life changing amount of money/resources."

"One day [I] went to check my cryptos on the blockchain site and it let me in without needing my 2FA[. W]ith that [I] felt dread and then saw all my cryptos had gone."

"After a few days processing how [I] felt [I] learnt that my 2FA had been reset and removed."

"A few months later [I] realized my email mail wasnt showing in my email and realized someone had hacked my email and changed setting so that anything with specific words like password, account etc. would go straight to the bin. So they have do a real hack job on me it seems."

"[N]ow as the bull run starts its gone. I feel like killing my self, feels like life has done this on purpose." "[T]o be honest [I']m done with crypto all together. I[']ve lost 0.364 BTC that could potentially be worth £70,000 this bull run[. A]ll [I] have now is 0.027 BTC."

"[I']ve just checked his transactions and this person has used tumblers to hide his transactions[. I]nsane."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Blockchain.com Funds Stolen Truth-Seeker1990

Date	Event	Description
November 30th, 2020 10:04:29 AM MST	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost has been estimated at $7,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

In this case, there are multiple failures. Storing funds online is a very risky move, and the safest storage is offline with a properly protected key. Password reuse was likely also a factor in this attack. At the very least, make sure that key accounts such as primary email, banking, or crypto, have unique and secure passwords. A good method of generating secure and memorable passwords is the XKCD method of generating 4 fully random words. Feel free to turn those words into a long human-readable sentence, with standard punctuation/spaces, if your service will allow it.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.