Brazil's Crypto Streamer Loses Thousands Of Dollars Due To Personal Key Leaks

Crypto Fraternity, became the latest victim of unsafe storage practices. (photo: twitter @CrypticWeb3_)

JAKARTA - Brazilian crypto streamer Fraternidade Crypto has become the latest victim of unsafe storage practices. He reportedly lost thousands of dollars due to a personal key accident.

During a live broadcast on YouTube on August 29, the owner of the Crypto Fraternity channel, Ivan Bianco, unknowingly exposed his personal key to the crypto wallet he was holding himself.

In a live broadcast regarding Bitcoin and blockchain games, Bianco seems to be trying to access passwords for the Gala Games blockchain gaming platform via text files on its computer.

Unfortunately for streamers, the Gala Games password is stored in the same text file as the seed phrase for its MetaMask wallet, which has a large number of MATIC tokens.

Not long after accidentally opening a text file exposing two of his personal keys, which controls the crypto wallet, Bianco closed its live broadcast, but it seems too late to recover the funds.

The Crypto Fraternity then started a new live broadcast, claiming that one of the viewers managed to access his MetaMask wallet through a private key and stole all of his 86,000 MATIC Polygon. When the accident occurred, the amount was worth around US$50,000 (Rp755.3 million).

"I accidentally showed my personal key directly, and that person quickly sent it to another address. I tried to close the broadcast and sent the crypto to another address, but I was late," Bianco said in an emotional video following the crash.

In the video, the streamer provides a link to the Polygon address of the unknown perpetrator. Piles of 86,000 MATIC then began to be moved to various other addresses.

Bianco claims that he lost his entire life savings due to the accident, begging broadcast viewers to return the money in return. The YouTuber also said he plans to report the matter to local police, noting that about 70 people are watching his poor live broadcast.

According to several online sources, Crypto Fraternity may have managed to retrieve some of the funds. Local crypto executive Guilherme Renn total of his money.

"Security itself is something that requires extreme attention," the executive said, adding that crypto users should never store their seed phrases and passwords on computers or places that are easily accessible.

When contacted by Cointelegraph, Bianco said that he apparently managed to retrieve 86,000 MATIC, but still had to retrieve his non-fungible token (NFT). "I recovered 50 thousand dollars, about 86000 MATIC. Others are still missing, countless values because it is NFT, an estimated value of around 15 thousand dollars is still missing," Bianco noted, adding that he also lost some Ether on the ARB network.

Nothing is more important than the security of personal keys in crypto storage itself. It's very important to be very careful in handling personal keys or seed phrases, and for some people, it might be better to choose storage solutions, such as exchanges. Crypto enthusiasts recommend that investors diversify their crypto storage types to prevent losing their entire life savings.

While self-storage allows users to basically "enter their own banks," the method is still vulnerable to many risks, such as theft, damage, or loss.

"Not your key, not your coin" is a popular expression in the crypto community warning users about these risks. Once a storage wallet user himself exposed his personal key to someone else, the previous owner no longer had rights to the funds, in accordance with crypto rules.