Why is this scam
Search the Internet (or reddit) for mybtgwallet today, and you’ll find several results about people losing all of their Bitcoin after inputting their mnemonic phrase into MyBTGWallet, a website claiming to be an online web wallet for Bitcoin Gold where users could check their BTG balance and, ostensibly, one day use the website to transact with their Bitcoin Gold. True is that this scam resulted in investors losing a total of $3.3 million to miscreants who deceived and stole the private keys of customers making use of this wallet.
As per reports that can be found on the internet, Mybtgwallet.com was created by a person called John Dass who was a respected member of the Bitcoin Gold community. He promoted the project on various social platforms including Reddit, Steem and was able to lure in many susceptible individuals.
The signs of confirmation
We have no reason to believe that anybody involved with Bitcoin Gold was involved with this scam, but they did have a conversation with the creator of the website and help him test its balance reporting features. This site was listed on the official bitcoingold.org website as a wallet provider. It has since been removed. Analysis of the website’s code showed that the page stored an individual’s private keys as and when they were submitted. The owners of the project were also found to have changed the platforms GitHub code in an attempt to steal as much money as they could.
Let’s see the other signs.
We have never trusted in that wallet, it has almost the same name as MyEtherWallet, and maybe that is the main reason of why we have never trusted in this one. They didn’t have public developers and all certificates that most online wallets have.
Frankly, it was a shady one.
Every time someone entered their mnemonic seed into MyBTGWallet, their mnemonic was Base64 encoded, stored on the website cookie and then transmitted to Google, where the scammer was free to decode it and have full access to that person’s private keys derived from that seed.
And that’s how somebody scammed the Bitcoin community out of over $1 million USD and scammed the Bitcoin Gold team into recommending his website to do so.
Recommendation – People are going to try to manipulate you into giving them access to your crypto. If you let them, your crypto will be gone forever.