Bitcoin core developer loses nearly $3.5 million in BTC, Changpeng Zhao of Binance offers help

Bitcoin core developer Luke Dashjr lost access to his crypto encryption key, termed PGP key, and nearly 200 BTC tokens were stolen. The CEO of the world’s largest exchange by trade volume, Changpeng Zhao (CZ) offered help and said his team will monitor and freeze the stolen tokens if they hit the trading platform. 

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Bitcoin core developer loses PGP key, Changpeng Zhao proposes solution

Bitcoin core developer Luke Dashjr informed his 55,600 followers on Twitter that his PGP key has been compromised and his BTC tokens have been stolen. A PGP key is a public encryption key. When a user creates a PGP key, a keypair with a public and private key is generated. 

Dashjr explained that a PGP key is used to verify that a Bitcoin Knots or Core download isn't infested with malware. The developer warned users against downloading Bitcoin knots until the issue is resolved. If downloaded, the system needs to be shut down to prevent loss of BTC holdings. 

The BTC core developer asked the US Federal Bureau of Investigation in his tweet.

Binance’s CZ acknowledged Dashjr’s loss and assured that his team will monitor the trading platform and freeze any stolen tokens. 

Dashjr lost all his Bitcoin, nearly 200 BTC worth $3.5 million as a result of the incident. CZ has criticized self-custody, where a crypto user takes sole possession of their wallet's private keys instead of trusting them to an exchange, since the massive outflows prompted by fear of contagion after the collapse of FTX last November. The Binance CEO pointed out the challenges of self-custody and said:

Sad to see even an OG #Bitcoin Core Developer lost 200+ BTC ($3.5 million). Self custody [has] a different set of risks.