- Apr 2017
According to security researchers, BitcoinPaperWallet.com sends a copy of every private key it generates on behalf of its users to the site’s servers. Whoever has access to the BitcoinPaperWallet’s back end can then access these keys and steal the funds associated with wallets generated on the site.
- BitcoinPaperWallet.com features a backdoor in its code that shares private keys for its paper wallets with anyone who has access to the website’s backend.
- BitcoinPaperWallet users who collectively claim to have lost millions of dollars worth of bitcoin.
- Blockchain analysis shows these funds flowing to Binance and Poloniex exchanges.
- The unfortunate scenario is a reminder that, in most cases, web-based bitcoin wallet generators should be avoided in favor of vetted bitcoin wallet software and hardware.