WARNING: Your Wallet May be Compromised

The losses from compromised addresses on MyBTGWallet are estimated to be around $3 million at today's prices, but many more wallets may be compromised.

WARNING: If you ever input the private seed to a wallet in the web service of MyBTGWallet, it is possible that the wallet is forever compromised. If you are holding funds in the same wallet, move them immediately to a new one with a new seed. If your wallet is empty now, do not use it again, it has been compromised. 

According to the community of those affected by MyBTGWallet, the current estimate of losses amounts to $3 million, much more than a conservative estimate of around $500,000 to $1.5 million. The losses may widen as unaware users continue to send funds to compromised wallets. 

The latest losses were reported as of November 22, and there is no knowing who else can be affected. A Slack community has formed to estimate the losses and possibly provide support and mount questions to the Bitcoin Gold team. 

The most off-putting point of the loss was that the wallet was presented as safe in the early days of Bitcoin Gold. The hard fork of Bitcoin was prepared in a hurry, and all things were done at the last moment. So the wallet may have been an honest oversight, but also a symptom of the whole project appearing in a rush, with many glitches and problems.

It is possible that the code for MyBTGWallet by developer John Dass was abducted and script-injected, while the wallet itself was working. But this does not change the fact that the wallet was presented as trustworthy by the BTG team and accepted as such by the users now suffering losses.

The BTG team claimed it had contacted the FBI to investigate the theft of funds. But as the affected wallets show, the funds have been scattered around many wallets and addresses and it would be extremely difficult to attach an online identity to the addresses. 

At the moment, it is best to wait out instead of rushing to get the "free coins" from Bitcoin Gold. While it may create short-term profits, the project has seen too many security risks, including the potentially compromised Electron Gold wallet. The market price of Bitcoin Gold is also unstable, going through pump-and-dump cycles, going from $500 to a low under $200 and back to $280.