Just a friendly reminder, cold wallet vs hardware wallet, Windows malware

[Lucius]

~snip~
But hey, everybody is responsible for their own crypto and wallet security setup. People can do stupid things or can go safer paths.

For some people, even $50 for such a device may be a high price, because it's an amount that doesn't mean much in the EU or the US, but in some countries you have to work a whole month to earn that. However, I would also agree that anyone who wants to invest in Bitcoin should first learn the basics, then play a little with desktop/mobile wallets, and only then think about whether their future investments will justify the purchase of a hardware wallet.

I also see that there is some confusion with the terms cold wallet and air-gapped wallet, and it should be clearly stated that they are not the same thing. An air-gapped wallet is a device that does not connect directly to the internet, but uses SD cards or QR codes to communicate with the user interface, which makes it maximally secure, while on the other hand, some use the term "cold wallet" generally for other hardware wallets that still have to connect to the user interface online, but generate private keys (seeds) on the device itself.

[Franklyn-wood]

I think it's unrealistic to expect people to buy a hardware wallet first before they buy their Bitcoin. As much as I agree that it is better for security, people who are buying Bitcoin newly need time to understand all these, how to get them and how they are different.
I think if they just know not to put untrusted apps, extensions, videos and things like that on their phone and don't click phishing links, etc, you should be fine, if you use a trusted open source wallet.
Using a hardware wallet alone doesn't keep you safe. There are still security guidelines you need to follow.

No doubt about whether to buy hardware wallet or buying Bitcoin first. Having to know the important steps to follow before doing anything should be the taeget. Before investment are made there should have been adequate understand about it, security consciousnes should be the first in mind before strategies on how to source funds to invest in the business, and when comfort to start.
All this are process needed to be put into consideration likewise in Bitcoin investment. Keeping watch all the time is pretty good. If the hardware wallet are not properly kept on might fall victim of losing investment as well.

[BlackHatCoiner]

Forget Windows malware. Cyber threats will become much worse in the age of AI. The latest models are capable of finding vulnerabilities in critical code, like the linux kernel. You should absolutely not store any significant amounts in hot wallets. They are even less safe now.

And to be fair, I'd invest in a signing device instead of a hardware wallet to just be sleeping easy at nights.

[coinlary]

Forget Windows malware. Cyber threats will become much worse in the age of AI. The latest models are capable of finding vulnerabilities in critical code, like the linux kernel. You should absolutely not store any significant amounts in hot wallets. They are even less safe now.

This got me thinking, doesn’t this pose more of a threat to open source itself?

[TypoTonic]

Considering how expenses hardware wallets are, investors would hesitate to Invest in them first.

It's a good idea, since we need to take security to it's peak when investing in Bitcoin or cryptocurrency. But how many investors would bother about this? Some sees this kinds of news everyday but ignores them thinking it's not possible to happen to them.

That's not a good mindset though, especially if they are going to invest a lot. The cost of a hardware wallet is just minor compared to losing all of their coins. If it's to hold small amounts for daily transactions, then hot wallets are fine, but if it's for long term storage, I'd rather take my time and save up until I can afford one.

Even the best still could be a victim when he's not careful, so no one should think they are in a better position. even with a hardware wallet you could still be vulnerable.

It wouldn't hurt to use a more secure setup. A hardware wallet reduces risk, but of course it's still the person's responsibility to exercise due diligence.

[m2017]

This is just a friendly reminder as why it's still better you invest in a open source hardware wallet first before buying your Bitcoin, things are changing so fast that if what you are using to store your Bitcoin or crypto isn't made specifically ( hardware device ) for this reasons you are taking a big risk.

For some users, the investment is comparable to the price of a hardware wallet or so. In this case, should buy a HW device? Probably not.

The risks are significantly less if the OS isn't from Microsoft.

The day you chose to get a good hardware wallet that's open source is where you mind still stop skipping when such similar news like this shows up online.

Quite the contrary, why would you read such news if, after purchasing a hardware wallet, your assets are completely safe?

A airgapped, open source, hardware wallet is a good investment, that costs less than most mid range smartphones, how you lay your bed is how you will sleep on it.

Approximately $50 + shipping (can get a discount during promotions).

[lovesmayfamilis]

Why not add the link?

According to what I found out about it, it is true:
https://www.microsoft.com/en-us/security/blog/2026/06/17/crypto-clipper-uses-tor-worm-like-propagation-for-persistence-control/

According to Microsoft Threat Intelligence and Microsoft Defender Experts, users devices have beenn infected by the malware since February of this year.

This malware comprises of a worm component that ensures propagation and a clipper/stealer component that harvests and exfiltrates cryptocurrency wallet information.

A special thank you to you, as it seems the OP himself didn't fully grasp the essence of his post. The danger is that flash drives, any of which users typically use to store important documents and seed phrases, could be instantly lost if this clipper infiltrates their device.
You're right that I didn't see the thread title. In fact, I would have separated the two threads, as a hardware wallet is one thing, and a regular flash drive, which is used much more frequently, is another. But a moderator knows best, I agree. Here's a link for those who want to delve deeper into the issue.

https://malware.news/t/crypto-clipper-uses-tor-and-worm-like-propagation-for-persistence-and-control/108000

[ImGenius]

The article didn't talked about hardware wallets at all. The article talked about how a malware attack windows device and how Microsoft defender is useful by detecting them. It says the malware infect device through a malicious shortcut (.link) file and sent crypto wallets private keys through a Tor SOCKS proxy.
Who knows It's maybe Microsoft advertising their antivirus or it could be something serious .

[BlackHatCoiner]

Forget Windows malware. Cyber threats will become much worse in the age of AI. The latest models are capable of finding vulnerabilities in critical code, like the linux kernel. You should absolutely not store any significant amounts in hot wallets. They are even less safe now.

This got me thinking, doesn’t this pose more of a threat to open source itself?

It does until the AI will be able to decompile the source code of closed-source wallets, if it is not already capable of doing that. At that point, it will be time to get the pop corn.

[Zwei]

this is nothing new, that kind of malware has been around since i can remember.
there is this good topic by @LoyceV that i would suggest everyone to read who is new to bitcoin/crypto: How to lose your Bitcoins with CTRL-C CTRL-V

Considering how expenses hardware wallets are, investors would hesitate to Invest in them first.

not at all, you can get trezor safe 3 for like $60, and you can get better models at a discount around black friday or when they do promos.

A cold wallet setup with a used decent business-grade laptop is in the same ballpark price-wise.

it's also more viable in places where you can't get a hardware wallet directly from the company (buying from resellers is a bad idea), and especially in countries where crypto is banned or customs confiscate anything crypto related.

[LoyceV]

A cold wallet setup with a used decent business-grade laptop is in the same ballpark price-wise.

I like cheap "old" business laptops for various purposes, but a proper cold wallet with offline signing is not foolproof, and doing it the right way is very time-consuming. For example, I wrote this for offline signing a transaction from a paper wallet:

Online:
Install Electrum on your PC.
Import your address to create a watch-only wallet.
Preview the transaction, Copy the unsigned transaction. Put it on a USB stick.

Offline and running without hard drive storage:
Get a Linux LIVE DVD. Use Knoppix or Tails for instance, or any other distribution that comes with Electrum pre-installed.
Unplug your internet cable. Close the curtains. Reboot your computer and start up from that DVD. Don't enter any wireless connection password. Keep it offline.
Start Electrum. Import your private key.
Copy your unsigned transaction from the USB stick, load it into Electrum.
CHECK the transaction in Electrum. Check the fees, check the amount, check all destination addresses (character by character).
If all is okay, sign the transaction. Copy it back to your USB stick.
Turn off the computer. That wipes the Live LINUX from memory and all traces are gone.

Online:
Use your normal online Electrum to (check again and) broadcast the transaction.

I encourage Bitcoin users to practice this and get comfortable with offline signing, but I wouldn't recommend storing any real amount this way until you're absolutely certain you know what you're doing!

Cyber threats will become much worse in the age of AI. The latest models are capable of finding vulnerabilities in critical code, like the linux kernel.

Copy.Fail was one of the worst root exploits I've seen in my life. Luckily, it required access to a user-account first, so the damage was limited.

[Localhostspeed]

The article didn't talked about hardware wallets at all. The article talked about how a malware attack windows device and how Microsoft defender is useful by detecting them. It says the malware infect device through a malicious shortcut (.link) file and sent crypto wallets private keys through a Tor SOCKS proxy.
Who knows It's maybe Microsoft advertising their antivirus or it could be something serious .

This should be directed people that will want to use windows laptop and don't want to pay to use the software. Many people are guilty of this, they download OS form unofficial Microsoft and then download it but the operating system will asked them for activation keys. Instead of buying those keys from Microsoft, they look for the crack version to install and they lose some privileges on the operating system. They might download bad software with malware without knowing it.

This is why it's good to use operating system that are open source, Linux is a good one even though you can be limited to some applications software but most crypto apps that you can think of doesn't only focus on the windows but also on other operating system that are open source like Linux. Instead of downloading windows without knowing what was change and how things have been manipulated on the inside, it's better to use open source operating system without Malware.

[Dex_master25]

The article didn't talked about hardware wallets at all. The article talked about how a malware attack windows device and how Microsoft defender is useful by detecting them. It says the malware infect device through a malicious shortcut (.link) file and sent crypto wallets private keys through a Tor SOCKS proxy.
Who knows It's maybe Microsoft advertising their antivirus or it could be something serious .

In my own understanding I think even using electrum wallet could pose a threat because the main problem is actually the operating system of the device and not the electrum wallet itself.
This gets complicated for a new user thinking they can start saving some coins using the more affordable electrum wallet or any hardware wallet on their device without knowing it is just a hot wallet or a more porous wallet exposed to malware scare at any time.

[KiaKia]

~snip

Hardware wallets are really good but honestly they are not mandatory although it's crucial that if you ever intend on getting one it's best you get an open source one. The only problem I see with airgapping is little mistakes can literally mess everything up and not everyone can walk through the process cleanly.

Nevertheless news like these sadly don't surprise me anymore and one of the reasons they'll continue to come up aside from human errors is the fact that hot wallets will always be a thing. It's similar to how people get defrauded from their banks.

Till the end of time if crypto last that long, hot wallet is your quick to make payment app and thats why I like them but I don't want to keep alot of assets on them because these vulnerabilities.

One thing is the hot wallet been reliable, another thing is the android you are running them on needs to be a reliable one too, this is the real reason why I don't even bother anymore about hot wallets.

But I prefer using them to make payment even purchase stuffs online, it's way easier than grading my hardware wallet from where I hide it to complete payment online.