YouTuber reveals seed phrase on YouTube and loses $60,000

YouTube blogger from Brazil Ivan Bianco lost funds from two cryptocurrency wallets and NFTs totaling about $60,000 after displaying seed phrases during a live stream.

Bianco runs the Fraternidade Crypto channel with nearly 34,000 subscribers and specializes in blockchain games.

During one of his streams in late August, the blogger created a new wallet and accidentally opened a text document where he stored private keys. Within minutes unknown individuals withdrew about 86,600 MATIC ($50,800 at the time of the theft) and 3.35 ETH ($5,750) from his addresses. He also lost several NFTs. The total loss amounted to around $60,000.

The streamer reported to police, but soon a man contacted him on Discord, admitting that he was the thief and expressing regret.

After this conversation, the wallet containing most of the stolen funds returned 86,600 MATIC to Bianco.

In a comment to Decrypt, the blogger refused to name the attacker. Many followers doubted the story’s veracity, but Bianco rejected all suspicions.

According to him, law enforcement is tracking the remaining smaller sums stolen by others. The YouTuber hopes his example will serve as a warning to all.

In late May, Unciphered, a cybersecurity startup, posted on YouTube video showing a seed-phrase breach of a Trezor T wallet.