Twitter Hack Sparks Fresh Calls to “Ban Bitcoin”

Yesterday, a series of identical tweets promoting a Bitcoin giveaway began appearing across Twitter profiles with large followings. The list of hacked accounts included Apple, Uber, Bill Gates, and many others.

The financial damage has been minimal, however, as the hackers only earned a little over $100,000 in BTC. Still, the severity of the event and Bitcoin’s involvement have sparked fresh calls for a ban on the market’s top cryptocurrency. 

Several unconfirmed theories have emerged as to how exactly the hackers breached the world’s most popular social media site. Possible attack vectors may have included insider dealings, social engineering, or compromising Twitter’s backdoors.

Many users took to Twitter to call for banning Bitcoin, including New York Times Journalist Josh Barro.

You know, we wouldn’t have to worry about this sort of thing if cryptocurrency was illegal.

— Josh Barro (@jbarro) July 15, 2020

Though Bitcoin has made headlines, the hackers merely used Bitcoin as a means of payment. The choice in cryptocurrency was poorly thought out, as blockchain forensics technology can quickly trace on-chain operations. 

Researchers can now deanonymize popular obfuscation services like Tor, making Bitcoin an unattractive tool for criminals.

Still, the damage could have been much worse. 

Though the attackers gained unfettered access to some of the most influential brands and people in the world, in the end, they leveraged their power to deploy a relatively harmless Bitcoin scam. 

Indeed, events could have transpired much differently as malicious actors could have easily sparked deadly international conflicts. With so much at stake, astute observers are shifting their criticism from Bitcoin to that of centralized platforms. The U.S. Congressman, Tom Emmer, tweeted:

Bitcoin isn't the problem. Centralized control is.

— Tom Emmer (@RepTomEmmer) July 16, 2020

Besides the ongoing criticism of Twitter’s central point of failure, Congress has had similar concerns regarding Facebook’s Libra, and it’s centralizing influence over users’ funds.

It took Twitter’s team several hours before it began blocking compromised accounts. Arguably, this could be done faster in a decentralized setting, where users could use a voting-like mechanism to tag suspicious accounts. 

Vitalik Buterin, a co-founder of Ethereum, criticized Twitter’s centralization and said that getting these accounts back may be a lengthy process.

I have friends who today have twitter accounts they are locked out of and they contacted support weeks ago and the backdoor isn't helping.

One already just created a new account