- Vitalik Buterin stresses the importance of wallet security in preventing crypto losses.
- Mask Network CEO Suji Yan loses over $4M in a suspected private key leak attack.
- Crypto market faces a $810B drop as frustration grows over slow U.S. crypto policies.
Vitalik Buterin, the co-founder of Ethereum, recently issued a strong reminder on his social media account regarding the risk of crypto holders. While much of the focus has been on theft and hacking, Buterin stressed that many individuals lose crypto due to forgotten passwords, software bugs, and lost devices.
He pointed out that because there is no attacker to identify, victims often stay silent about their losses, feeling too ashamed to speak out. The Ethereum co-founder argued that strong wallet security solutions must account for such risks, especially as cryptocurrency adoption grows.
Related: Latest Bybit Hack Linked to N. Korea’s Crypto Theft for Weapons Funding
Buterin on Crypto Security: Beyond Hacking
Buterin’s statement comes in response to rising concerns over crypto security regarding the chance for loss rather than theft. He highlighted various ways individuals can lose access to their digital assets, such as losing a device with wallet data, forgetting passwords, or even encountering software bugs that result in funds becoming inaccessible.
The conversation around security also gained traction after Mask Network CEO Suji Yan revealed that his wallet had been hacked. The attack, which resulted in the theft of over $4 million in crypto, took place within minutes and occurred just hours after Yan’s birthday celebration.
Suji Yan’s $4 Million Hack: A Cautionary Tale
Yan suspects the attack may have been due to a private key leak or an offline attack while his phone was unattended during the gathering. Yan’s suspicion stems from the brief time his phone was left unattended, even though he trusted the people at the event.
The stolen funds, which included Ethereum (ETH), WETH, MASK, and Tether, were quickly transferred to new addresses and converted into Ethereum before being split across multiple wallets.
Crypto Market Downturn: Trump Policies and Security Fears
Adding to these security issues, the crypto market is facing significant losses. The Financial Times reported a decline in the general crypto’s market capitalization, which has dropped by about $810 billion since its January peak.
Bitcoin, the leading cryptocurrency, has seen a decrease of more than 22% in value this month, with its price falling below $80K .
Related: JPMorgan Warns of Crypto Market Downturn as Bitcoin Ether Demand Drops: Report
This decline follows growing anxiety among traders over U.S. President Donald Trump’s slower-than-expected adoption of pro-crypto policies, but these anticipations have not materialized.
Meanwhile, concerns about Trump’s trade policies and tariffs have further dampened the spirits of crypto market participants, causing many to reassess their expectations regarding future regulatory changes.
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