El Salvador's Chivo Wallet Faces Further Cybersecurity Breach: Hackers Expose Source Code

April 24, 2024 BACK TO NEWS

Hackers struck again, exposing more information about El Salvador’s state-run Bitcoin wallet, Chivo, on April 23 after leaking the personal data of millions of users earlier this month. The hacker group CiberInteligenciaSV released part of the software wallet’s source code on BreachForums, a black hat hacking forum.

“This time I bring you the code that is inside the Bitcoin Chivo Wallet ATMs in El Salvador, remember that it is a government wallet, and as you know, we do not sell, we publish everything for free for you,” wrote the hacker group, highlighting the significance of their actions.

Cybersecurity project VenariX had warned of an incoming Chivo source code data leak on Monday, citing a post from the hacker group’s Telegram channel. The leaked information included the code and VPN access belonging to El Salvador’s Chivo Wallet network.

This recent breach follows the release of over 144 GB of data containing the personal information of 5.1 million Salvadorans who had downloaded the wallet. The stolen data included users' full names, unique identifying numbers, dates of birth, addresses, and HD pictures of their faces. This breach occurred despite the wallet being available since August but was only leaked for download starting April 5.

The Salvadoran government is yet to release an official statement regarding either of this month’s hacks, raising concerns about the security of Chivo and the safety of user data.

El Salvador initially launched Chivo in September 2021 alongside its official adoption of Bitcoin as legal tender. However, the rollout faced numerous challenges, including software bugs and technical glitches. Despite promises of a free $30 incentive for downloading the wallet, some users encountered difficulties, while others faced issues with withdrawing money from Chivo ATMs.

The government had planned to install lightning network technology at over 100 Chivo ATMs across the country by Q4 2024 to facilitate faster and lower-fee Bitcoin transactions. However, reports indicate that less than 2% of the population is using the wallet for remittance payments, raising questions about its effectiveness.

As El Salvador grapples with these cybersecurity breaches, concerns about the integrity of Chivo and the safety of user data continue to grow.