Exclusive: Cybersecurity Alert - El Salvador's Chivo Bitcoin Wallet Compromised Again

On April 23, cybercriminals operating under the moniker CiberInteligenciaSV disclosed Chivo's source code and VPN access on BreachForums. This incident marks the second breach involving the state-operated Bitcoin wallet, raising concerns about the security of El Salvador's national cryptocurrency infrastructure.

Digital security firm VenariX had issued warnings prior to the breach, highlighting chatter within CiberInteligenciaSV's Telegram Channel about an imminent data leak. The organization even extended an unusual invitation to government officials for negotiation.

Chivo, conceived as the official Bitcoin storage solution of El Salvador, became a pivotal component of President Nayib Bukele's groundbreaking move to adopt Bitcoin as legal tender in September 2021—a historic first globally. The wallet empowers Salvadorans to transact with Bitcoin and access the cryptocurrency via designated BTC ATMs across the country.

Despite its strategic importance, Chivo faced teething problems upon its launch, with users encountering issues like sluggish performance and app crashes. To remedy these challenges, the Salvadoran government enlisted the expertise of U.S. software firm AlphaPoint.

Complications worsened earlier this month when the personal data of around five million Salvadorans was exposed online. The massive 144GB leak, initially mistaken for a vaccination database, comprised sensitive details required during Chivo's registration process. However, the Bukele administration has refrained from commenting or issuing an official statement on the matter.

El Salvador's foray into the realm of cryptocurrency is marked by significant milestones but marred by persistent cybersecurity challenges. As the nation pioneers the use of Bitcoin on a national scale, ensuring robust digital security remains imperative to safeguard both the citizens and the integrity of its innovative financial infrastructure.

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