The El Salvador Bitcoin Chivo Wallet has fallen prey to a notorious hacking group.
Despite this, El Salvador remains committed to its Bitcoin strategy with a recent Diploma integration in schools.

The Chivo Wallet, an official Bitcoin wallet for El Salvador’s nationals, has fallen under a security breach. The attack spearheaded by a group of hackers known as CiberInteligenciaSV has resulted in the exposure of the source code and VPN of the Chivo Wallet.

The Attack on Chivo Wallet

The hack occurred Tuesday when CiberInteligenciaSV released part of the source code on BreachForums, a notorious forum mostly frequented by cybercriminals.

The hacker group wrote,

This time I bring you the code that is inside the Bitcoin Chivo Wallet ATMs in El Salvador, remember that it is a government wallet, and as you know, we do not sell, we publish everything for free for you.

This development raises concerns about the security of the Chivo Wallet as it comes less than a month after the personal information of about 5.1 million Salvadorans was made public following an attack.

Surprisingly, VenariX, a local cybersecurity project gave hints of the recent attack on Monday. Taking to the X platform, VenariX wrote,

The group hacker CiberInteligenciaSV, announces in its Telegram account that it will publish part of the source code and VPN accesses of Chivo Wallet.

Besides leaking the code, the hackers also released VPN credentials that could enable unauthorized users access to the network that manages the Chivo ATMs located across the country. The potential consequences of the Chivo wallet leak are enormous. Firstly, It raises concerns about the integrity of the Chivo Wallet itself, making it possible for hackers to gain unauthorized access or take full control of the user’s accounts.

Additionally, the leaking of the codes and VPN details raises agitation about possible identity theft and fraud among the population. According to reports, the Salvadoran government has not yet given an official statement regarding the exposure.

El Salvador’s Plan for the Chivo Wallet

Launched in September 2021, the Chivo wallet aligns with El Salvador’s bold plan to legalize Bitcoin as a legal tender and reduce the dependency on traditional banking systems, as previously reported by Crypto News Flash.

El Salvador’s President Nayib Bukele stated at the time that all 200 ATMs in Salvador were fully operational and so were the 50 additional ones installed in the US for use by Salvadorians.

For users, the wallet presents several benefits which include free deposits, withdrawals, and purchases. Additionally, users can transfer funds between their bank accounts and their Chivo wallets.

Also, the option to top up Chivo with credit, debit, and gift cards was also enabled. Despite the wallet being an interesting approach, it has encountered a series of technical glitches.

Nonetheless, the nation is taking several actions that will accelerate the acceptance of Bitcoin by its populace. Per Crypto News Flash’s earlier announcement, El Salvador recently introduced a Bitcoin Diploma program in public schools to enhance awareness and understanding of Bitcoin’s technology among students.

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Filed under: Bitcoin - @ April 24, 2024 7:16 pm