Following a previous breach that exposed personal data of millions of users, hackers have once again targeted El Salvador's state-run Bitcoin wallet, Chivo. On April 23, hacker group CiberInteligenciaSV released part of the software wallet’s source code on BreachForums, a black hat hacking forum.

In a message posted on their Telegram channel, the hacker group stated, “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.”

Prior warnings from cybersecurity project VenariX hinted at an imminent leak of Chivo source code data. The hacker group fulfilled this threat by releasing over 144 GB of data containing personal information of 5.1 million Salvadorans who had downloaded the wallet. This data, available for purchase since August, was leaked for download starting April 5. The compromised information included users’ full names, unique identifying numbers, dates of birth, addresses, and HD pictures of their faces.

Among the leaked information was a file named Codigo.rar, containing code and VPN credentials related to El Salvador’s Chivo ATM network.

Despite these breaches, the Salvadoran government has yet to release an official statement addressing the security lapses.

El Salvador initially launched Chivo in September 2021 alongside the implementation of Bitcoin as legal tender. However, the wallet's rollout faced challenges, with users encountering software bugs and technical glitches. Additionally, some users reported difficulties in accessing promised incentives, including a free $30 for downloading the wallet.

In a bid to enhance functionality, the Salvadoran government announced plans to install lightning network technology at over 100 Chivo ATMs across the country by Q4 2024. This technology aims to facilitate faster and lower-fee transactions for Salvadorans using Bitcoin.

Despite the government's efforts to promote Bitcoin adoption through Chivo, reports suggest that usage remains low. A Salvadoran newspaper indicated that less than 2% of the population utilized the wallet for remittance payments, casting doubt on its effectiveness as a mainstream financial tool.

As El Salvador grapples with security concerns surrounding its state-run Bitcoin wallet, questions arise regarding the government's ability to safeguard user data and ensure the integrity of its digital infrastructure.