P. 10



                                            BTC WALLET THEFTS

                Hackers Have Stolen Millions Of Dollars In Bitcoin -- Using Only
                                                   Phone Numbers

               Just after midnight on August 11, self-professed night owl Jered Kenna was working at home in
               Medellin, Colombia, when he was notified the passwords had been reset on two of his email

               He tried to set up new passwords himself by prompting the email service to send him text
               messages containing a code — but they never arrived.

               “So I called the company to make sure I hadn’t forgotten to pay my phone bill, and they said, you
               don’t have a phone with us. You transferred your phone away to another company,” he says. A
               hacker had faked his identity and transferred his phone number from T-Mobile to a carrier called
               Bandwidth that was linked to a Google Voice account in the hacker’s possession. Once all the calls
               and messages to Kenna’s number were being routed to them, the hacker(s) then reset the
               passwords for Kenna’s email addresses by having the SMS codes sent to them (or, technically, to
               Kenna’s number, newly in their possession). Within seven minutes of being locked out of his first
               account, Kenna was shut out of of up to 30 others, including two banks, PayPal, two bitcoin
               services — and, crucially, his Windows account, which was the key to his PC.

               While this would wreak havoc on anyone’s life, it had especially disastrous consequences for
               Kenna. “I’m an early bitcoiner,” he says. “I don’t think you have to say anything else.”

               Kenna was so early in bitcoin that he remembers when he would plug his computer into the
               network and see only four other computers running it. Now, there are more than 5,000. Computers
               supporting the network are slated into a competition to win bitcoin roughly every 10 minutes. In
               the early days, the payout was 50 bitcoin each time; now it’s 12.5. Kenna recalls that at a certain
               point, when he was “only” winning 50 bitcoins a day, he stopped supporting the network, thinking
               it wasn’t worth it. At today’s price, he was giving up on $40,000 a day.
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