El Salvador Bitcoin Wallet Hit by Cybercriminals, Source Code Leaked

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Chivo, El Salvador’s state-owned Bitcoin wallet, has fallen victim of a cybersecurity breach, according to reports on April 23, 2024. Parts of the wallet’s source code and VPN access credentials were, as a result, published by a team of hackers, CiberInteligenciaSV.

This is just another episode of the cyber security challenges facing the Chivo wallet, which emerged earlier this month when the personal information of about 5.1 million Salvadorians was published.

The hackers revealed the details on BreachForums, a rather infamous forum mainly used by individuals that engage in cybercrimes. The data exposed also comprises not only the code but also VPN credentials that could help an unauthorized person to access the network that controls the Chivo ATMs throughout the county.

El Salvador Government’s Response to the Breach

The Salvadoran government has not officially responded to the breach yet. This silence is causing greater worry among the public and observers regarding the measures that have been implemented to protect classified information.

The Chivo wallet was launched in September 2021 in line with El Salvador’s revolutionary plan to legalize Bitcoin as an official currency to promote financial inclusivity and reduce the dependency on traditional banking systems.

Although the Chivo wallet is an interesting approach, this digital wallet has encountered several technical problems since its release and the recent breaches have only added to the public’s worries about the safety and reliability of the government’s digital finance initiatives.

Impact on Salvadoran Users

Leaking of the codes and VPN details of the source poses a major threat to the integrity of the Chivo wallet system, making it possible for hackers to take control of or gain unauthorized access to the user’s accounts. Nearly the whole adult population of El Salvador is affected by the particularity of personal data exposed previously, which causes fear of possible identity theft and fraud among the population.

These breaches have been criticized by security experts, who advise users to be watchful and monitor their accounts in case there are any signs of an odd behavior. The implications that the incompetence of El Salvador’s financial ecosystem might take a significant hit are also considerable, as confidence in government-provided digital solutions may wane.

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