A recent investigation revealed that a series of significant cryptocurrency thefts were linked to the 2022 LastPass breach. Cybercriminals stole master passwords during the breach, which they used to access victims’ accounts and steal funds. In March 2024, federal authorities seized $24 million worth of cryptocurrency from a high-profile theft involving Ripple co-founder Chris Larsen. Investigators believe these thefts are connected to the LastPass data breach, as the stolen data included sensitive cryptocurrency information.
Researchers discovered that many victims had stored their cryptocurrency seed phrases in the “Secure Notes” area of their LastPass accounts.
The stolen information allowed attackers to target multiple cryptocurrency wallets, bypassing traditional security measures like email or phone compromises. In the case of Larsen’s $150 million theft, the attackers quickly transferred funds through various cryptocurrency exchanges, making it difficult to trace. Authorities believe the pattern of the thefts matches earlier cyber heists linked to LastPass’ stolen data.
Despite evidence pointing to a connection between the LastPass breach and the ongoing cyberattacks, LastPass has denied any conclusive link. The company has stated that it has cooperated with law enforcement but still claims no solid evidence ties its breach to the thefts. Experts argue that LastPass failed to alert users to the risks associated with their stored data, especially the unencrypted seed phrases in “Secure Notes.” Many victims have not taken necessary actions to protect their assets, leaving them vulnerable to ongoing cyberattacks.
Experts have called for LastPass to take more responsibility for the vulnerabilities in its systems that allowed these attacks. Victims could have mitigated the losses by securing their cryptocurrency wallets, but the failure to do so has resulted in millions of dollars in stolen funds. Security researchers urge LastPass to encourage users to update their credentials and address the weaknesses in its password vault service. The ongoing wave of thefts underscores the importance of robust security practices for cryptocurrency holders.
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