Ivan Bianco, a prominent YouTuber in the blockchain gaming community based in Brazil, found himself at the center of a crypto heist drama this week after inadvertently revealing his cryptocurrency wallets’ seed phrases during a livestream on his channel, Fraternidade Crypto.
The incident according to decrypt report unfolded during a live broadcast when Bianco mistakenly displayed a document containing his seed phrases, granting unauthorized access to his crypto wallets. This security lapse allowed unknown individuals to swiftly seize control of his wallets and, subsequently, abscond with a significant sum of his digital assets.
Fraternidade Crypto, a YouTube channel dedicated to blockchain gaming, boasts a sizable following of approximately 34,000 subscribers and has garnered over 2.2 million views across its videos since its inception in 2017.
Following the livestream blunder, a visibly distraught Bianco took to another live broadcast to explain the situation to his viewers. He recounted his futile attempt to create a new wallet after realizing the exposure of his seed phrases, but by then, it was too late. Cryptocurrencies from two wallets had already been siphoned within minutes.
Bianco did share the address associated with his Polygon wallet, which had seen about 86,600 MATIC tokens, equivalent to roughly $50,800, being pilfered. Furthermore, another 3.35 ETH, valued at approximately $5,750, remained inaccessible in a wallet on the Arbitrum network, according to the YouTuber. Several smaller amounts of crypto were also reported stolen by different individuals.
Bianco via email confirmed to reporters that he lost nearly $60,000 worth of tokens and NFTs in the incident. The report also revealed that the YouTuber had taken the matter to the police, filing an official report regarding the theft.
In an unexpected twist, an unknown individual who claimed responsibility for the theft contacted Bianco via Discord. During their conversation, the perpetrator expressed remorse, acknowledging his wrongdoing, and subsequently returned the 86,600 MATIC tokens, equivalent to roughly $50,000. Bianco decided not to disclose the identity of the individual, citing the return of the stolen assets as the reason for his discretion.
As for the other individuals involved in the theft of smaller amounts, Bianco assured Decrypt that they are currently under investigation and efforts are being made to trace and locate them.
In the aftermath of this incident, Bianco hopes that his experience will serve as a cautionary tale for others in the crypto community. He intends to use the videos of the incident to educate and warn viewers about the importance of safeguarding their cryptocurrency wallets and seed phrases.
Bianco concluded by stating, “I won’t say his name, because the guy returned it and there’s no reason for me to screw him, even though what he did was wrong.” This unexpected turn of events leaves the blockchain community with a fascinating case study of redemption in the crypto world.