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Crypto Users Claim Popular Bitcoin Paper Wallet Generator Is Compromised, Millions Allegedly Stolen

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A number of forum posts and tweets say that the website bitcoinpaperwallet.com is compromised and people have said they have lost bitcoin using the paper wallet generator. Three years ago the website domain changed ownership and ever since then losses have been reported on Reddit forums, bitcointalk.org, Twitter, and other public venues. The owner of the paper wallet generating web portal denies the platform’s codebase is compromised and claims it has been audited by a security expert.

Bitcoinpaperwallet.com Wallet Generator Site Accused of Being Compromised and Unsafe

Years ago, a website that was once operated and owned by, Canton Becker, called bitcoinpaperwallet.com was once an extremely popular paper wallet generator. However, when the website was sold in 2018, bitcoinpaperwallet.com’s reviews became very negative. The complaints continue to this day and a month ago on Reddit, a user named u/heroiclife created a thread asking people to help him shut down the website.

“Help me shut down the bitcoinpaperwallet.com scam,” the post explains.

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The Reddit user u/heroiclife said he wasn’t personally affected, but he was a crypto wallet recovery service provider that heard about several cases.

“I’ve heard from customers who had their Bitcoin stolen there. It’s dumb to use a paper wallet in 2021, but not everyone knows that,” the individual said. He also asked if bitcoiners could help submit abuse complaints to Enom the domain registrar, report abuse to Linode the web host, and to flag the website on Google Safe Browsing as malicious.

Twitter is also littered with posts that say that bitcoinpaperwallet.com has been compromised. On January 3, 2021, on Bitcoin’s 12th anniversary, Dustin Dettmer said: “Just had a friend lose all his holdings using this website, which appears to be a total scam. How do we get it shut down? We should get the word out about this particular scam bitcoinpaperwallet.com,” Dettmer added.

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On December 13, 2019, a Reddit user named u/maff1989 said he lost funds after getting a paper wallet inside a Christmas card.

User Claims His $700,000 in Bitcoin Was Sent to Another Wallet One Minute After Loading the Paper Wallet

A month ago, on the web portal stackexchange.com one user said he leveraged the website bitcoinpaperwallet.com offline and sent 14.5 BTC ($700k+) to the wallet’s public key. A minute later, his 14.5 BTC was sent to another wallet. “Any advice on what I can do?” he asked. “I’ve accepted the loss and the lesson (should have used the offline generator) but want to make sure this doesn’t happen to others.”

Crypto Users Claim Popular Bitcoin Paper Wallet Generator Is Compromised, Millions Allegedly Stolen

After the site was sold in 2018, some Reddit users have accused the current owner of going “rogue.” Others have said that it is obvious that the website is not producing private keys as it should. The Reddit user u/senor_curioso explains it can be tested and said:

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“Yes, here is how you can prove that the current site is producing predictable keys.

  • Save the HTML generator to computer
  • Find the long set of “testing keys” represented by eckey_test=[{,,,}]; and replace it with just a single keypair like this:eckey_test=[{pub:”MUtDQ25Td05uQ0I0Y05ZN0hFc0hja1M4Vjk5bUxFNjJKZQ==”,priv:”NUpreTZtM2lZS2FxTm1NZ2NvaEdYb2o0dXVyVTNXaXhiak54R1N4NmNlbmU3S25FWGR6″}];
  • Now load up the generator. It will generate the exact same (predictable) wallet over and over.
  • The server is giving each visitor a different set of “testing keys”. They are not being used as tests. There are being used as seeds for the random number generator, and are obviously being saved on the server so that they can be stolen later.”

Website Owner Claims Paper Wallet Generator’s ‘Servers Are Clean’ and Audited by a Security Expert

A recent report written by the author, Colin Harper, details that the paper wallet generating website is currently maintained by an individual named Sarkis Sarkissian. In the report, Sarkissian is quoted as saying that the owner has “received complaints from users who claim to have lost their bitcoin using our website.”

It seems he was available for commentary concerning the matter at hand. Sarkissian stressed, however, that the complaints were likely “resolved” or the user figured out it was “their own fault.” Harper also asked Sarkissian if he was aware of a “back door” in the bitcoinpaperwallet.com codebase.

“We have searched our source code for the issues present in those documents and we cannot reproduce the same results,” Sarkissian was quoted as saying. “Our servers and source code has been verified clean by [our security expert Jonel Richard]. He is still on retainer and continues to investigate, trying to reproduce the issue found by others,” the website’s current owner insisted.

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Creating a paper wallet must be handled with great care and it’s possible that user error was involved with a number of the accusations toward the domain strewn across the web. It is always mentioned in many walkthrough guides, no matter what type of wallet generator leveraged, it should always be done completely offline. A person who attempts to create a cryptocurrency paper wallet online, while being connected to the web, is extremely vulnerable to hacking exploits.

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Bitcoin

Legendary Trader Peter Brandt Challenges Binance with Four Questions about 88% BTC Crash

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Here’s what is unclear for Mr. Brandt about mysterious Bitcoin (BTC) flash-crash of Oct. 21, 2021

Prominent trader and analyst Peter Brandt has taken to Twitter to ask his four questions in the context of the flagship crypto’s 88% dropdown.

What do Binance and Binance.US have in common?

First of all, Mr. Brandt challenged the character of corporate relationships between Binance and Binance.US, its unit focused on American markets.

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Also, Mr. Brandt asks whether Binance is planning to release detailed documents to specify statistics for trades, their volume and prices during the flash-crash.

Then, the trading legend asked about the role of the platform in taking the opposite side of a client fills.

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Besides the Binance CEO and co-founder Changpeng “CZ” Zhao, Mr. Brandt mentioned the Interactive Brokers platform, U.S. watchdogs CFTC and SEC and Gary Gensler, the SEC chairman.

Most expensive “trading algorithm bug” ever?

Also, Mr. Brandt attached a screenshot of a tweet by CZ when Binance’s boss warned his audience about expected volatility spikes across cryptocurrency markets.

Finally, Mr. Brandt added that he never used Binance for trading.

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As covered by U.Today previously, on Oct. 21, 2021, amidst a spending rally, the Bitcoin (BTC) price briefly tanked to the $8,000 level, losing more than 88% in no time.

A similar flash-crash was registered on 26 other low-liquidity exchanges. A Binance.US representative attributed this dramatic plunge to a critical bug in third-party mechanisms by one of the platform’s sophisticated institutional clients.

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Dogecoin Looks Ready To Rip As Bitcoin Finds Critical Support, According to Crypto Analyst Justin Bennett

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Crypto analyst Justin Bennett says that Dogecoin (DOGE) could be ready to make a run for its next critical level about 37% above current prices.

The popular analyst tells his 88,000 Twitter followers that DOGE is attempting to break out of a long descending resistance line that it has been up against since May.

“DOGE looks ready (as long as $BTC cooperates).

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Just needs to get above 0.27 on a daily closing basis to open up 0.34+.”

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Source: Justin Bennett/Twitter

In the near term, Bennett says DOGE needs to turn the $0.26 level into support and close above $0.27 before continuing higher to his initial target of $0.34. At time of writing, Dogecoin is trading at $0.26 according to CoinGecko.

Looking at Bitcoin, the analyst says BTC’s ability to maintain the $60,000 level is a major show of strength that could have big implications in the broader markets.

“Although the BTC weekly candle might not look great, it still held above $60k.

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That’s what I was looking for. Doesn’t mean we can’t see more pullback before further upside, but it does mean $60k is holding as support on a weekly closing basis.

That’s huge.”

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Source: Justin Bennett

Bennett also has his eye on Bitcoin dominance, which compares BTC’s market cap to the rest of the crypto markets. He says it’s bounced off a support level and is currently on its way up.

“BTC.D is bouncing from 44.5% support.

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Surprise, surprise.”

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Source: Justin Bennett/Twitter

While surging Bitcoin dominance often suggests that altcoins will underperform, Bennett says this may only hold true in the short term. He says if the king crypto is looking healthy, then altcoins might take it as a signal to move up.

“This isn’t necessarily a bad thing for altcoins.

Will they suffer if BTC.D heats up again?

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In the short term and against BTC, yes.

But Bitcoin strength now is massively bullish for alts over the next few months.

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Anybody That Does the Homework Eventually Invests in Bitcoin: SkyBridge Capital’s Scaramucci

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Founder of SkyBridge Capital believes that anyone who starts looking into Bitcoin seriously will end up buying

Antony Scaramucci, founder and CEO of SkyBridge Capital venture fund that has a branch investing in Bitcoin, has told CNBC that Bitcoin can eventually convert anyone who “does their homework” to invest in it.

He named several billionaires who used to be skeptical on BTC but have been into it since 2020.

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Ray Dalio, Paul Tudor Jones, etc, have turned to Bitcoin

According to Scaramucci, Bitcoin has the power to attract even its opponents – if they begin to study BTC carefully and “do the homework” they get convinced of the great potential Bitcoin has.

He has referred to billionaire investors, such as Ray Dalio, Paul Tudor Jones and Stanley Druckenmiller – they used to be opposed to the flagship cryptocurrency and now are holding BTC in their portfolios.

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Among these former Bitcoin skeptics are Shark Tank’s co-hosts – Kevin O’Leary (widely known as Mr. Wonderful) and Mark Cuban, billionaire and owner of the Dallas Mavericks baseball team. He now considers Bitcoin a store of value and believes that Dogecoin is a perfect crypto for payments. The Mavericks online store accepts DOGE for tickets and merch, and, according to Cuban, people are spending thousands of USD in Dogecoin on every month. He also likes Ethereum because of smart contracts.

Here’s how much Bitcoin Scaramucci holds

As part of studying BTC, Scaramucci recommended reading the BTC white paper written by Satoshi Nakamoto, the mysterious person or a team of them that created Bitcoin back in 2008-2009.

As for his own crypto holdings, Anthony Scaramucci holds over one billion USD worth of Bitcoin. He believes BTC to be digital analogue of gold.

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He also believes that Ethereum and Cardano have a large potential and are going to keep rising in the future.

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