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Crypto Wallets / Re: Are not you afraid to lose money when using software wallets?
« on: Today at 01:26:21 PM »Many of you are likely aware of the Atomic wallet breach that occurred in June 2023, when over 100 million dollars was stolen from its users. Almost a year has passed, but the Atomic developers still haven't revealed what actually happened. May be they don't know at all.
And i speculate they want people to forget or give up about it altogether.
Consider this scenario: imagine an update is pushed to a software wallet with a malicious code. If hackers gain access to the update process or the wallet developer's infrastructure, they could inject malicious code into a seemingly legitimate update. Users who download and install this update could unknowingly expose their wallet's private keys or seed phrases to the attackers which would lead to loss of their funds.This happened to electrum wallet last year or few months ago. That's the reason i don't update eventually my electrum and other wallet, unless a vulnerable was detected and was announced through their official social media handles, websites and some other news outlets. Other than that, i still do that practice more often.
This raises the question: can this happen with any software wallet? Does it mean we can't trust anyone?
Do you mean when malicious server send message to Electrum user to update their software from fake website? If yes, then it's somewhat different from Atomic Wallet case. Anyway, i agree not immediately update software could reduce risk mentioned by OP.