How to Steal Cryptocurrency
If you ask me to name the strongest argument for keeping savings in cryptocurrency, I would say this: Cryptocurrency is the only asset that no one can take away from me without my consent.
- If I keep my savings in a bank, some authority could force the bank to withhold my funds, and the bank would have to comply.
- If I hide cash in a stash, a thief could find it and take it all.
- If I carry cash with me, it could be confiscated by the state or stolen by a robber.
This is not possible with cryptocurrency stored on the blockchain:
- No one can prohibit me from spending my cryptocurrency.
- The blockchain is not a stash; all my funds are visible to everyone, but for a thief to steal them, they would need to sign the transaction with a private key that only I know.
- Private keys are intangible, making confiscation very challenging.
Even when courts issue orders to “forfeit one’s interest in a cryptocurrency wallet,” enforcing such rulings is tricky. The person targeted may simply claim they don’t remember the private key.
At first glance, it seems the only way to take someone’s cryptocurrency is through direct violence (robbery, torture, etc.). Unfortunately, there are other ways.
Not All Cryptocurrencies Are Equal
In certain cases, the use of crypto assets can indeed be restricted.
This primarily concerns tokens issued via smart contracts. A smart contract can grant the token issuer authority to block certain addresses from using the tokens. If I attempt to send tokens from a blacklisted address, the transaction won’t be validated and won’t make it to the blockchain because it would violate the smart contract rules.
The most notable example of tokens that can be blocked by the issuer are those issued by Tether (USDT, EURT, and others). Smart contracts for these tokens often allow Tether to prohibit transactions from blacklisted addresses. Blockchain data shows that Tether frequently uses this feature.
Restrictions can also apply to cryptocurrencies that are not tokens but the native coins of a blockchain controlled by a centralized group...
At Rabbit Swap, we know from experience that the most vulnerable aspect of using cryptocurrency is exchanges — our area of expertise. When exchanging or purchasing anything with cryptocurrency, only deal with reliable and trustworthy parties.
On our platform, we offer fair and competitive exchange rates. However, if you encounter suspiciously advantageous offers elsewhere, exercise caution. Once your cryptocurrency is sent, it cannot be recovered in cases of fraud.
Stay vigilant, trade securely, and rely on trusted platforms like Rabbit Swap for all your exchange needs.
