The First Bitcoin Heist Cryptocurrency OG Robbed of 25000 BTC Due to Key Leak

This is a tragic story of a loss of current value of $1.6 billion…The article is sourced from the crypto KOL The Bitcoin Historian, compiled, edited, and written by PANews.
(Summary:
How to prevent your phone from being hacked? The U.S. Bureau of Security recommends “rebooting once a week.”)
(Background:
The seventh largest in history! DMM Bitcoin was hacked and 4502 bitcoins were stolen. The Japanese Financial Services Agency requested a thorough investigation and compensation plan.)
Allinvain mined when Bitcoin was below $0.05, owning 25,000 bitcoins. This article takes you through one of the biggest robberies in cryptocurrency history: Allinvain’s tragic story of losing $1.6 billion.
In 2010, Allinvain founded one of the first Bitcoin exchanges, Bitcoin Express. Bitcoin Express allowed users to purchase BTC using PayPal. Allinvain sold 1,000 BTC for $5 each. That is, each BTC was $0.005.


But Allinvain was also a dedicated Bitcoin miner. He could mine 500 BTC per hour with just a laptop, which is 1200 bitcoins per day.


Mining when Bitcoin was valued at $10 looked like this, and Allinvain could still use a home computer. He just had to press a button to generate BTC.


By 2011, mining difficulty soared. The hash rate skyrocketed to 4 TH/s. In 2010, the hash rate was only 0.001% of this figure – an increase of 114,000%. Allinvain stated:


But the more Allinvain researched, the more amazed he felt. Allinvain wanted to help Bitcoin and began advocating for purchasing and selling real goods with Bitcoin (BTC).


Allinvain quickly became a Bitcoin whale, owning over 25,000 bitcoins. In early 2011, Allinvain cheered for the rise in Bitcoin prices, as the price of Bitcoin surged to $30.
This was the first Bitcoin bubble. Allinvain then had a “magical” currency worth $500,000.


On June 13, 2011, disaster struck.
Allinvain saw a transaction of 25,000 BTC in his wallet. And just like that, all his BTC were stolen.


Allinvain was devastated and fell into depression, feeling that all his work for Bitcoin was in vain.


To make matters worse, this news spread worldwide. Forbes, The Atlantic, and the American Public Broadcasting Corporation all reported it. They called it the first Bitcoin theft.


This theft involved a huge amount of money and sparked conspiracy theories. Some said the whole thing was orchestrated by Allinvain. They accused Allinvain of spreading FUD.


What really happened?
Allinvain admitted it was his own fault. “I was too trusting of security measures, I was really stupid.”


Allinvain backed up his wallet to Dropbox, Wuala, and SpiderOak. When he found out that Dropbox employees could remotely access files, he deleted those files. But the root of the problem was someone invading his computer and stealing unencrypted wallet files.


Later, Allinvain realized it might have been a Trojan virus disguised as Bitcoin mining software. And he issued a warning again – personal security is crucial when holding BTC.


But the hack didn’t stop Allinvain from moving forward. He continued to be active in the Bitcoin field and started his own hosted mining business, striving to regain his wealth.


Allinvain’s biggest mistake was storing unencrypted keys on his computer. The hacker’s actions serve as a warning to always store private keys in a secure offline location. Even some of the most well-known companies in the Bitcoin space have suffered similar attacks.
To this day, Allinvain’s story continues to remind people of the importance of Bitcoin security.


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