Brazilian YouTuber Allegedly Loses $60K in Crypto After Accidentally Exposing Seed Phrases During Livestream

Ivan Bianco, a Brazil-based YouTuber (the host of the “Fraternidade Crypto” channel) who focuses on blockchain gaming, apparently suffered a significant loss of nearly $60,000 in cryptocurrency and NFTs. The loss allegedly occurred after he unintentionally displayed his crypto wallets’ seed phrases during a live broadcast. His channel has a following of around 34,000 subscribers and has garnered over 2.2 million views since its inception in 2017.

According to a report (published yesterday) by Kate Irwin for Decrypt, during the livestream, which took place on 30 August 2023, Bianco opened a document that contained his seed phrases. This lapse in judgment allowed unidentified individuals to gain control over his crypto wallets and allegedly siphon off his assets. Realizing his mistake, Bianco attempted to create a new wallet but found that the funds from two of his wallets had already been withdrawn within minutes.

In a follow-up livestream, an emotional Bianco explained the situation to his viewers. He shared that approximately 86,600 MATIC tokens, valued at around $50,800 at the time, were stolen from his Polygon wallet. Additionally, 3.35 ETH (worth about $5,750) remained trapped in another individual’s Arbitrum wallet. Smaller amounts of various cryptocurrencies were also reportedly taken by other users.

Bianco confirmed to Decrypt via email that the total loss amounted to roughly $60,000 in tokens and NFTs. He also informed that he had filed a police report regarding the incident. However, he expressed skepticism about the police’s understanding of the situation, stating that resolving the issue would likely be time-consuming.

Interestingly, after the theft, an unidentified individual reached out to Bianco via Discord. During a call, the person claimed responsibility for the theft but expressed regret. Following this conversation, the majority of the stolen MATIC tokens were returned to Bianco, amounting to about $50,000. While some of Bianco’s followers questioned the authenticity of these events, he dismissed such skepticism.

Bianco also mentioned that he had identified the thief but chose not to disclose the individual’s name since the majority of the stolen funds were returned. As for the others who took smaller amounts, he stated that efforts are underway to track and locate them. Bianco hopes that the incident will serve as a cautionary tale for others to be more vigilant with their digital assets.

https://youtube.com/watch?v=mSInRE1uNNM%3Ffeature%3Doembed

Featured Image Credit: Midjourney

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