according to the materials of the site - By Altcoin Buzz
The funds were stored in a software wallet, and the loss occurred without the victim signing any transaction. Malware simply extracted the private keys, giving attackers full access to the assets. For cryptocurrency users, this is a harsh reminder: storing large amounts in a software wallet is a risk.
Even experienced investors can fall victim to malicious code. In this case, the thief did not trick the user into sending funds. Instead, the software wallet itself was hacked, exposing the keys needed to access the funds. This scenario highlights the harsh truth in the field of digital asset security: software wallets are convenient but vulnerable.
Software wallets are applications that store your private keys on your computer or mobile device. They are easy to use, but since they are connected to the internet, they are susceptible to viruses, malware, and phishing attacks. When large sums of money are stored this way, the risk is not theoretical but inevitable.
Hardware wallets, on the other hand, store private keys offline and isolate them from potentially infected devices. Even if your computer is hacked, attackers will not be able to access the funds stored in a hardware wallet without physical access to the device. Real examples confirm this.
The trend is clear: as the value of digital assets increases, attacks on software wallets are becoming more profitable and widespread. According to Chainalysis, in the first half of 2023 alone, the volume of cryptocurrency thefts and fraud exceeded $3.8 billion, with a significant portion attributed to hacks of software wallets.
In response to a recent theft of $1.35 million, the co-founder of Thorchain proposed using Vultisig—a next-generation crypto wallet designed for the age of artificial intelligence agents. Vultisig aims to rethink wallet security by combining multi-blockchain support with multi-factor authentication, eliminating the need for traditional seed phrases.
This approach allows users to manage assets across different blockchains while adding layers of protection against malware and key theft. Moving beyond single-key models, Vultisig can set a new standard for safeguarding large cryptocurrency assets.
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