A Bitcoin core developer has reported losing over 200 BTC in a hack.

Luke Dashjr, a Bitcoin OG and core developer, claimed on January 1 that his PGP (Pretty Good Privacy) key was compromised on December 31, resulting in the theft of virtually all of his Bitcoin. 

PGP is a security method that uses two keys to gain access to encrypted information. Dashjr shared a wallet address where some of the stolen Bitcoin had been sent, but did not disclose the total amount stolen. 

The wallet address shows four transactions totaling 216.93 Bitcoin, worth approximately $3.6 million at current prices, made between 2:08 and 2:16 pm UTC on December 31. 

Dashjr said he had no idea how the hackers gained access to his key, although some have suggested a connection to a November 17 Twitter post in which Dashjr mentioned that his server had been compromised by “new malware/backdoors.”

Binance CEO Changpeng Zhao offered condolences and support in a January 1 post and said his security team would monitor the situation and freeze any stolen Bitcoin that came their way. 

Some in the crypto community have speculated that lax security may have been a factor in the loss, while others have suggested that it may not have been a hack at all, but rather someone finding the seed phrase or a “boating accident” (a meme used by some in the crypto community to avoid paying taxes by claiming to have lost all their Bitcoin in a “tragic boating accident”).

The incident has also sparked a debate about self-custody, which became a hot topic after the collapse of FTX last year. Zhao previously cautioned the crypto community about self-custody and said it carries a “different set of risks.” 

BTC influencer Udi Wertheimer questioned whether self-custody was a viable and safe option, stating that one “shouldn’t manage your own keys.” He added that “if even one of Bitcoin’s OG developers messes this up, I really don’t know how other people are expected to do it safely.”