Brazilian cryptocurrency streamer Fraternized Crypto One of the latest victims of unsafe self-storage practices, a private key mishap has reportedly cost thousands of dollars.
During a live stream on YouTube on August 29, the owner of Fraternized Crypto Chanel, Ivan Bianco, unintentionally open His private key in a self-custodial cryptocurrency wallet.
In the middle of a livestream related to Bitcoin (BTC) and blockchain games, Bianco apparently tried to access his passwords for blockchain game platform Gala Games via a text file on his computer.
Unfortunately for the streamer, his Gala Games passwords were stored in the same text file as his Metamask wallet seed phrase, which contained a significant amount of polygons MATIC (MATIC).
Shortly after accidentally opening the text file, which revealed two private keys for his cryptocurrency wallet, Bianco shut down the livestream, but apparently, it was already too late for the streamer to recover the funds.
Fraternized Crypto Subsequently start A new livestream, claims that one of his viewers gained access to his Metamask wallet with private keys and stole his entire Polygon stash of 86,000 MATIC. At the time of the accident, the amount was valued at approximately $50,000.
“I accidentally showed my private key live, and the person sent it to another address really quickly. I tried to stop the broadcast and send the crypto to another address, but I was too late,” Bianco said in an emotional video after the crash.
Streamer in video is provided A link to the unknown offender’s polygon address. The 86,000-MATIC stash then began moving to various addresses.
Bianco claims he lost his entire life’s savings in the accident, asking stream viewers for a refund for a reward. The YouTuber also said he plans to file a complaint with the local police, noting that about 70 people were watching his ill-fated livestream.
According to some online sources, Fraternized Crypto It has so far managed to recover at least some of its funds. Local crypto executive Guilherme Rennó visits X (formerly Twitter) on August 30 Report Rumor has it that Bianco was eventually able to recover “a good portion of the money”.
Related: 7 Ways to Safely Store Your Private Keys
“Self-protection is something that demands extreme care,” the executive noted, adding that crypto users should never store their seeds and passwords on their computers or in easily accessible places.
Contacted by Cointelegraph, Bianco said he somehow managed to recover 86,000 MATIC, but still needs to recover his non-fungible tokens (NFTs). “I recovered $50,000, approximately 86000 MATIC. Everything else is still lost, uncountable value as NFT, approximately $15k worth still lost,” Bianco said, noting that he lost some Ether (ETH) on the ARB network.
Nothing is more important than the security of private keys when it comes to crypto self-defense. It is extremely important to be very careful when handling a private key or a seed phrase, and for some, it may be a better idea to choose custody solutions such as exchanges. Cryptocurrency enthusiasts advise investors to diversify their cryptocurrency storage types to prevent the loss of their entire life savings.
While self-custodial allows users to essentially “be their own bank”, this type of method of holding crypto is still vulnerable to many risks such as theft, destruction or loss. “Not your keys, not your coins” is a popular expression in the cryptocurrency community that warns users of such risks. Once a user of a self-custodial wallet discloses their private key to someone else, according to crypto rules, the former person no longer owns the funds.
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Disclaimer: This article has been updated to show that “Fraternized Crypto” recovered its 86,000 MATIC stash shortly after the private key crash.