KEY POINTS

  • Trezor hardware wallet is considered safest in safeguarding private keys
  • The hardware wallet has been the target of malicious hackers very recently
  • Crypto theft is rampant with malicious actors sensing a good opprotunity

A cybersecurity expert, who promised one of his clients assistance in setting up a security system, was arrested last Friday after he allegedly stole almost $600,000 in cryptocurrency from his client's hardware wallet.

Aaron Daniel Motta from Pinellas Park, Florida, aged 27 years, who claimed to be a tech expert and listed as a "certified ethical hacker" on LinkedIn, allegedly stole the Trezor hardware wallet, including the password of his customer.

The St. Petersburg College-educated man reportedly used his new tools to transfer a whopping $575,910.61 worth of cryptocurrency from his client's wallet to his. Authorities said the suspect found the password to the hardware wallet in the customer's home.

Thieves trying to steal cryptocurrencies typically move the funds through many different accounts at dizzying speed -- sometimes hundreds of thousands of transactions -- in an attempt to cover their tracks. 
Thieves trying to steal cryptocurrencies typically move the funds through many different accounts at dizzying speed -- sometimes hundreds of thousands of transactions -- in an attempt to cover their tracks.  AFP / INA FASSBENDER

A hardware wallet is a cryptocurrency wallet where owners store private keys in a secure hardware device. Private keys are critical data used to authorize outgoing transactions on the blockchain network.

Clearwater police arrested Motta and charged him with grand theft and offenses against computer users. The owner of Motta Management and Mitigation Services was booked into the Pinellas County Jail last Friday but was released on Saturday after paying $60,000 bail, according to WFLA.

Trezor hardware wallets, considered the safest place to store digital currencies, was targeted by hackers recently when they launched a phishing campaign to siphon off funds from owners.

The attack involved a social engineering breach of Mailchimp, an email marketing platform, to steal its clients' data. Malicious actors reportedly sent mass emails to Trezor hardware wallet holders informing them that their accounts were compromised via a data breach.

The users were then directed to update their Trezor suite and set up a new PIN. The clever ploy cost Phillipe Christodoulou, a cryptocurrency investor, $600,000 in Bitcoin, who lost his life savings through a fake Trezor app downloaded from the Apple App Store.

Earlier this year, Trezor said it had fixed vulnerabilities in the hardware wallet, including copying the key and PIN. The statement came after an engineer shared a video online showing how he hacked a Trezor hardware wallet and recovered $2 million in crypto, showing how easy it is for hackers to execute this attack.

RELATED STORIES
Bitcoin