STJ Upholds Arrest of Hacker Who Hid Millions in Bitcoin—But Stored Password on WhatsApp

• How Did the Hacker Get Caught?
• Why Can’t Authorities Access the Bitcoin?
• What Does This Case Reveal About Crypto Security?
• Could This Impact Bitcoin’s Reputation?
• What’s Next for the Hacker?
• FAQs

In a twist straight out of a cybercrime thriller, Brazil’s Superior Court of Justice (STJ) has upheld the arrest of a hacker who allegedly stashed millions in Bitcoin—only to undermine his own opsec by saving the wallet password on WhatsApp. The case highlights the ironic intersection of high-tech crime and amateur mistakes, with authorities now scrambling to recover the digital fortune. Here’s the full story, complete with insights from blockchain analysts and a deep dive into the pitfalls of crypto security.

How Did the Hacker Get Caught?

The suspect, whose identity remains sealed due to ongoing investigations, was arrested in October 2025 after a months-long international manhunt. According to court documents, he allegedly siphoned funds from corporate networks using sophisticated ransomware attacks. The irony? While he encrypted his victims’ files with military-grade algorithms, he stored the keys to his own bitcoin wallet in a WhatsApp chat—unencrypted and easily accessible to authorities once they seized his phone. "It’s like robbing a bank and leaving your getaway car keys in the lobby," remarked a BTCC market analyst.

Why Can’t Authorities Access the Bitcoin?

Despite having the password, recovering the funds isn’t straightforward. The hacker reportedly split the Bitcoin across multiple wallets and used privacy tools like CoinJoin (a mixing service) to obscure transactions. Data from CoinMarketCap shows the total stash could be worth over $50 million at current prices—if it’s ever recovered. Legal experts note that without the hacker’s cooperation, untangling the trail might take years, given blockchain’s pseudonymous nature.

What Does This Case Reveal About Crypto Security?

This blunder underscores a recurring theme in crypto crimes: even tech-savvy criminals falter at operational security. A 2024 report by Chainalysis found that 23% of seized crypto assets were linked to poor password management. "Hackers often focus on attacking systems but neglect their own vulnerabilities," said a cybersecurity consultant. The suspect’s reliance on WhatsApp—a platform repeatedly flagged for surveillance risks—adds a LAYER of poetic justice.

Could This Impact Bitcoin’s Reputation?

Unlikely. While critics often conflate Bitcoin with illicit activity, data from TradingView shows that illegal transactions represent less than 1% of total volume. However, the case may fuel regulatory debates. Brazil’s Congress is already debating stricter crypto oversight, with proposals ranging from mandatory wallet disclosures to banning privacy coins.

What’s Next for the Hacker?

The STJ’s ruling ensures he’ll remain behind bars while prosecutors build their case. If convicted, he faces up to 15 years under Brazil’s cybercrime laws. Meanwhile, the fate of the Bitcoin hinges on forensic experts—and whether the hacker left any more clues in his digital breadcrumbs.

FAQs

How much Bitcoin did the hacker steal?

Exact amounts are unconfirmed, but estimates suggest over 1,000 BTC (worth ~$50 million as of October 2025).

Why use WhatsApp for password storage?

Convenience over security—a common pitfall. End-to-end encryption doesn’t help if the recipient (in this case, law enforcement) has device access.

Has Brazil recovered the funds?

Not yet. Blockchain analysis is ongoing, but mixed wallets and privacy tools complicate recovery.