Crypto scams · 7 cases
Keys and seed phrases
On the blockchain, the private key is the only proof of ownership: whoever knows it can move everything, with no way back. A key left in code, a second-hand wallet already compromised, a bot that asks for it, custody trusted to a single person: these cases show how it leaks, and how to protect it.
The exposed seed phrase
- How it works
- The 12 or 24 words of the seed phrase rebuild your wallet on any device. Saved online, in a photo or in a file, they end up leaking.
- Warning sign
- Your seed phrase exists somewhere in plain text: screenshot, cloud, code repository.
- The reflex
- Write it on paper, offline, and never type it into a website.
The cases
The Fatal Commit
A private key left in a public repository. Forty seconds later, the wallet is empty.
The Second-Hand Wallet
A sealed hardware wallet at half price. And 24 words already printed in the box.
The Stolen Private Key
A compromised password manager, and the company key leaked.
A seed phrase split into shares
- What happened
- The seed phrase was split into pieces, but three were enough: brought together in one night, they opened the vault.
- The reflex
- If you split your seed phrase, give the pieces to people who cannot collude with each other.
The case
The Secret Share
A seed phrase in four shares, three to open it. Someone gathered them in one night.
All the keys in one hand
- What happened
- A single person held the keys to the customers' funds. When the vault was finally opened, it had long been empty.
- The reflex
- Don't leave large amounts on a platform: keep your funds in your own wallet.
The case
The Dead Man's Vault
The founder dies, the only one holding the keys. The vault is empty, and has been for a while.
The bot that wants your key
- How it works
- A trading bot promises to buy before everyone else. To switch it on, it asks for your private key, then empties your wallet.
- Warning sign
- A service that asks for your private key or seed phrase.
- The reflex
- Your private key is shared with no one, human or program.
The case
The Telegram Bot
A miracle trading bot that only asked for your private key.