Hacked on Coinbas: Rochman misplaced $ 205,000 in cryptocurrencies

I remember sitting there looking at an empty bill Shane Rochman laments when he learns that his $ 205,000 has disappeared from his Coinbas account. A cryptocurrency enthusiast who actually believed in the magic of possession of cryptocurrencies … until this news came.

Rochmann, new life and not the slightest luxury

In 2018, when he was 33, Rochman founded a company specializing in gastronomic tours in Toronto. He thought he would differentiate himself from his competitors by recruiting comedians from stand up in his team.

This project was followed by a new marriage. And Rochman’s husband soon gave birth to Avery’s first son.

This change in life forced Rochman to reconsider his priorities. The small family really needed a house and a fund to educate little Avery. The opening of several savings funds was sometimes a necessity for adults. The Canadian comedian thus acknowledged the usefulness of investing in a diversified portfolio of stocks and bonds.

As if that were enough to secure the fixed costs of today’s households, especially if they are developing in the context of inflation.

Rochman’s special jobs brought little: he was often forced to smash the little money he had accumulated in his savings account. Speaking of savings, do you remember how Ray Dialo advised us not to rely on this financial product either? We need to invest and not keep our money in the bank, stressed this finance expert.

To come up with investment ideas, Rochman shared his concerns with several friends. He took the same approach as the newly rich cryptocurrencies, who were able to improve their situation in record time.

The beginning of Rochman’s adventure on Coinbas

Cryptomens form another big thing Rochman’s fellow advisers thought. The Canadian actor opened a Coinbas account without waiting and took the opportunity to buy $ 6,000 in bitcoins (BTC), ethers (ETH) and litecoins (LTC).

As you know, Coinbase is a Silicon Valley company that allows the purchase and sale of cryptocurrencies.

Do you remember that cryptocurrencies were sold even cheaper in 2018? One BTC coin was worth about $ 1,000 at the time. With 4.8 BTC in his pocket, some LTC and ETH, Mr. Rochman would have made very significant gains 3 or 4 years later. Multiplying, for example, 4.8 bitcoins by $ 31,325, the June 6 price, would be a fortune of some $ 150,000. At the time of ATH in November 2021, its portfolio would have accumulated around $ 331,000.

However, it should be noted that Kryptonians are not running in the streets. Some friends of Shane Rochman do not like his new investment.

Most people told me not to get involved, honestly. They said it wouldn’t suit me – that I would lose money that might have gone elsewhere “This father says.

Which prompted him to keep his Coinbase account password safe and focus on other things.

Rochman did not expect the success of his investment

And the year 2021 was coming, a period during which the cryptocurrencies were doing very well. Even the NFT hit the Google Trends and Collins Dictionary podiums at the time.

During this period, there were restrictions associated with Covid-19 and a sharp increase in bitcoins. Individuals quickly invested in cryptocurrencies when they learned of the existence of this new Eldorado. Thanks to a click from Elon Musk, posting “#bitcoin” on his Twitter profile and posting ” In retrospect, this was necessary “,” King of cryptocurrencies was adjusted to $ 5,000 apiece. And only in 1 hour.

A few weeks later, Tesla announced that it would accept BTC as payment for its products. Do you know the significance of such a announcement in the world of finance? To give you an overview, we will simply say that the price of bitcoin has jumped again at a high rate.

For Rochman, the sale of his crypto assets seemed necessary. In fact, he realized that his crypto-wallet he was better off than his tax-free savings account (TFSA).

Financial freedom was finally ahead of him, as his shares reached $ 205,000. Enough to encourage the purchase of a house and the opening of a trust fund for Avery Studios.

It’s the biggest amount of money I’ve ever had he noted.

Deprivation of access to his Coinbase account

To take over this beautiful jackpot, he had to find his password. Several connection attempts failed. He asked Coinbase for help in obtaining a password reset link.

And it took several months for the stock exchange to decide to close the account. Certainly, the Coinbase administration believed Rochman was a usurper.

We have reviewed your account and found that you are not authorized to use the Coinbase platform to purchase cryptocurrencies, use our deposit services or link payment methods. For security reasons, we can’t disclose the factors that led to account closure “, He wrote to him on April 6 on the American stock exchange.

The final solution was to report to the regional police in York. After completing this process, Coinbase quickly reopened its account. Except that at that moment, Tesla decided to back down from her first bitcoin decision. The electric car manufacturer accused him of being energy-intensive, and that does not match his environmental beliefs.

At the same time, there was El Salvador, which legalized the BTC. Consequence: the queen of cryptocurrencies has fallen. And it had a relative effect on the cryptosphere.

Shane Rochman, empty wallet

Since Rochman is not the type to know a happy ending, his wallet, finally open, showed only $ 0.00. A simple verification of transactions made it possible to trace the sales operation of cryptocurrencies last January. Who do you think is responsible for this operation? Another person who is not Shane Rochman.

The unhappy actor says:

I remember sitting there looking at an empty bill. It’s hard to explain now, but I felt completely numb. My hands were shaking, I was sweating “.

It was difficult to comfort a wounded soldier like Rochman. As a consolation, his wife urged him to stop buying cryptomens.

Coinbase acknowledges piracy

In September 2021, Coinbase sent out a mass e-mail to its users confirming the comedian’s concerns. She said the hackers had managed to destroy funds belonging to about 6,000 clients. To achieve this, they took advantage of the existence of an error in the two-factor authentication system of the cryptocurrency exchange.

Their extensive phishing campaign paid off because customers did not hesitate to provide them with their email addresses, phone numbers and passwords.

It should also be noted that Coinbase has decided to compensate the victims. Except Shane Rochman didn’t get a dime. No refund or confirmation from the cryptomen exchange (to see if he was hacked or not) whispered.

On the other side of the bank, Coinbase apologized:

Due to customer privacy concerns, we cannot share Mr. Rochman (sic) account details. In most cases, Coinbase does not cover losses resulting from unauthorized access to Coinbase accounts due to a breach of the customer’s login details, which is often the cause of account takeovers. »

Nevertheless, American society has acknowledged the seriousness of the crime:

These are terrible crimes that can have a significant impact on consumers. With more and more of our information available online, it is becoming increasingly important for consumers to understand how to protect their personal email accounts and mobile phones from unauthorized third parties. »

Dissemination of acts of hacking cryptocurrencies

Two things would currently put cryptomens at a disadvantage: volatility and hacking. To understand the volatility, consider the case of bitcoin, which jumped 1,030% between the start of the Covid-19 pandemic and November 2021. But the cryptocurrency has also fallen sharply, dropping about half of his ATH since last November.

Regarding cyber attacks, remember that we provided a very informative article at the end of 2021. Also note that the total amounts stolen were approximately $ 3.2 billion in cryptocurrencies. According to Chainalysis, this represents 5 times more losses than in 2020.

In 2022, specifically in March, hackers attacked the Ronin Bridge (Axie Infinity). The result of the hack: about $ 615 million withdrawn from the accounts of thousands, even millions of users.

Remember that there are solutions to hack cryptocurrencies: use crypto wallets supported by the computer and not by the exchange platform. But also note that there are investors like Rochman who trust big exchanges like Coinbase.

This is how the bank works. Here, investors store their cryptocurrencies in ” wallet associated with the customer account. The Exchange therefore has control over the currencies contained in these portfolios, except that it will not be subject to any government pressure in the event of loss of money or bankruptcy.

M. Rochman no longer knows which saint to devote himself to. At this point, the actor had no choice but to leave the cryptocurrencies, his plan to buy real estate and enrich Avery Education Fund. To make do with the money, he still continues his savings, which currently amount to only $ 6,000. Strong end hacking cryptocurrencies !

Source: The Star

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Blockchain and cryptorevolution are underway! And the day the effects will be on the most vulnerable economy in the world, I will hope, despite all hope, that I had something to do with it.

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