2023-08-20 07:13:00
About 15,000 personal wallets containing up to $3 billion were revealed in bankruptcy documents filed by Celsius
[블록미디어 스탠리 최 기자] Cryptocurrency lending platform Celsius Network, which went bankrupt last summer, filed for Chapter 11 bankruptcy last year by submitting a list of hundreds of thousands of customers and their transactions within the platform, The Block reported on the 17th (local time).
At the time, widespread doubts were raised that if a huge amount of information, including a specific deposit and withdrawal on a specific date, was released, it would be possible to pinpoint the wallet used for the transaction. In addition, there were concerns that real names could be linked to on-chain identities.
However, it was unclear how many wallets could be connected or how many cryptocurrencies were in the wallets.
The Block worked with cryptocurrency analytics firm Nansen to research the documents and linked 127,000 transactions in the documents to blockchain transactions generated from a total of 52,057 personal wallets.
Excluding exchange wallets and decentralized entities here leaves us with 15,759 wallets that are likely customer-specified private wallets.
These personal wallets currently contain $900 million in cryptocurrencies, and when Luna’s price peaked in April 2022, it was found that these wallets were worth $3 billion in cryptocurrencies.
“Disclosure of customer lists without physical and email addresses is unlikely to expose customers to identity theft or physical harm,” the judge presiding over the Celsius bankruptcy said at the time.
However, the media pointed out, “It can be done with just a customer list, but it can be much more dangerous when combined with public personal cryptocurrency wallet information and other leaked data.”
“It’s fortunate that people don’t know how much information about them is being leaked through on-chain means,” said Taylor Monahan, senior product manager at Metamask. said.
The files released by Celsius include 2.7 million massive amounts of data, from interest payments to internal account transfers, and more than 568,000 deposit and withdrawal records.
# Did Celsius have to disclose vast amounts of data?
The Block pointed out that it is necessary to look at what data should be disclosed when filing for bankruptcy, whether Celsius needed to disclose such a huge amount of data, and whether it did not go too far.
Adam Shiff, a bankruptcy expert and partner at the law firm Fried Frank, said, “In a bankruptcy case, there is usually a list of creditors and parties involved in the case. This list should include the name and address of each creditor.” said. Courts also have broad powers to order information to be corrected, and are generally more precise about home addresses.
However, Schiff emphasized, “it is unusual for the bankruptcy filing documents to list specific transactions made on the platform in question.” “The main purpose of the information released is for the court to determine the company’s liabilities and see what could potentially be distributed, not to review all past transactions,” he added.
From this point of view, the Celsius case is neither a typical bankruptcy proceeding nor a feature likely to appear in a possible cryptocurrency bankruptcy filing.
# The Death of Cryptocurrency Privacy
Sebastian Bürger, founder of the privacy protocol HOPR, said: “What I am particularly concerned about is the potential for phishing attacks on cryptocurrency users in the long term, as attackers can get a complete picture of their victims.”
Citing the link between off-chain and on-chain information as most concerning, Bueger said, “i.e. I know where you live, how much money you have, and when you can access that money. This would be a very obvious physical threat to the individual whose data was leaked.”
There is some overlap between these data sets. For example, The Block compared Celsius creditor names to Ledger leaks and found 1,003 matching names. Some of these names were common, but others were so unique that they could be identified as the same person.
Ledger leaks included home addresses, and Celcius wallets were even able to identify who had the most money among cryptocurrency investors. Thus, by leveraging Celcius data, criminals can easily identify high-value potential targets.
There have been several instances of crypto investors targeting their homes over the years, including an elderly couple being robbed of $156,000 in cryptocurrencies from their home last month. Canadian police have warned that home robberies targeting wealthy crypto investors are a new trend.
While it’s unclear whether malicious actors will be using these kinds of data sets to target real-world, wealthy crypto investors, the more data that combines personal information and financial blockchain data becomes public, the more crypto investors are exposed. you’ll just have to feel it
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