YouTubers The CryptoTwins Lost $8,500 After Downloading a Shady EOS Wallet

Hackers have purportedly stolen 1,500 EOS ($8,500) from popular YouTubers TheHodgetwins. The pair downloaded a shady cryptocurrency wallet from the iOS App Store, then deposited their EOS into the wallet.

TheHodgetwins account has more than 4 million subscribers on YouTube while their CryptoTwins only has 18k. After depositing their EOS into the wallet, the two claim that hackers made off with the funds almost immediately.

The malicious wallet was called EOSIO Wallet Explorer. The pair downloaded the wallet from Apple’s App Store. Apple prides itself on the security of its app store, claiming that each app is manually reviewed. On Google’s Play Store, meanwhile, Google relies on a series of algorithms and detection systems to remove malicious apps.

In a video summing up the situation on their TheHodgetwins account, the pair describe how the theft happened:

“I have been [using EOSIO Wallet Explorer] on my iPhone to hold my EOS. I noticed these three transactions…totaling 1,500 EOS tokens. I want to be clear I did not authorize these transactions, not sure how this could have happened. I filed a claim with ECAF…but have not received a response yet.”

You can check the EOS block explorer to view the three transactions that are purportedly illegitimate. The block explorer shows three transactions, including one for 650 EOS, another for 773.6 EOS, and a final for 76.8 EOS. All three transactions add up to 1,500 EOS and are purportedly illicit.

The 1,500 EOS had been in the account just one week before hackers removed it all.

TheHodgetwins initially purchased EOS on a cryptocurrency exchange. They left their EOS in that exchange as it grew and collected gains over time.

The community eventually convinced TheHodgetwins that it’s a bad idea to leave cryptoassets in any exchange. The pair downloaded the wallet, deposited their EOS, and quickly lost it.

EOSIO Wallet Explorer appears to be a legitimate EOS wallet. In fact, it’s one of the better-known mobile wallets in the EOS community. The wallet was launched in July, just weeks after the EOS mainnet launch.

There are signs of trouble with the EOSIO Wallet Explorer app, however. As spotted by The Next Web, there have been four separate complaints with similar allegations to TheHodgetwins. All four of those complaints come from September 2018. Users complain that EOSIO Wallet Explorer misappropriated funds after depositing them into the account.

Up above, we mentioned that TheHodgetwins contacted the arbitration division of the EOS blockchain, ECAF. They have not yet received a response from ECAF.

ECAF, however, was designed for situations like this. EOS Block Producers have set a precedent for situations like this in the past. Earlier this year, Block Producers decided to freeze seven accounts that were violating the EOS constitution. The move was controversial because Block Producers didn’t properly consult with the community.

In this situation, it’s possible that ECAF, the EOS community, and the Block Producers could have frozen the funds that were stolen from TheHodgetwins. Now, however, it appears they’re too late.

Ultimately, this latest problem is with an app on Apple’s App Store. Google, however, has also hosted plenty of malicious crypto wallet apps. There are big problems with both app stores in terms of allowing malicious apps on their systems.

All of this highlights the importance of using the right crypto wallet. Use only trusted wallets with a long history of providing secure service for users. Make sure the code is publicly available online. If you can’t review the code yourself, find someone who can.

Ultimately, this loss was “only” $8,500 and pales in comparison to the losses of other major crypto hacks. Nevertheless, TheHodgetwins attack highlights the importance of choosing the right crypto wallet.

Best EOS Wallets: Top 2 Cold Storage Hardware & Top 3 Desktop Software Apps

Similar to Notcoin - Blum - Airdrops In 2024

origin »

255 +