When you open Subwallet and see that coins are missing or unstaked, the initial shock is huge. But at that moment it is important to contain the damage and try to save the coins that have not yet left the wallet. Unfortunately, due to the nature of cryptocurrencies, currencies that have already left the wallet cannot be saved. But let’s focus on what you can do to preserve as many coins as possible.
What to Do When Your Subwallet is Hacked
1. Create a new account
If you suspect your wallet has been compromised, avoid sending any additional funds to that wallet. Instead, open SubWallet and create a completely new account with a unique seed phrase. Be sure to follow our 5 Essential Rules to Keep Your Crypto Wallet Safe when setting up and securely storing your new seed phrase. This will help ensure that your assets remain secure in the future.
2. Remove all liquid funds
Once you created your new wallet go through the compromised wallet and check all coins you potentially had. Don’t forget to check other wallets/chains too as scammers might forget some. Send all coins to the new wallet created in step 1.
3. Check for Unstaking / Unbonding funds
If you locked funds through native staking or smart contract lockups and these funds require a unbonding period you might be able to recover these funds and prevent scammers from draining those too. Check the wallets you had if you have funds in unstaking and if you have also make sure to be aware when the funds unstake
3. Recover locked funds
To recover those funds you need to frontrun the scammers that hacked subwallet on the unbonding time. To achieve this you have basically to possibilities
- Manually Frontrun the scammers
You can try to open your wallet on the unbonding time and try to beat the scammers on withdrawing the funds. However, this approach only works if the scammers didn’t automate the sweeping process as a bot will always beat a human when it comes to submitting transactions.
If you are tech savy you can create your own bot to try to withdraw your funds quickly. Make sure to properly test the transaction sending and performance as your bot needs to work on the recovery time. There’s no second attempt - Asset Recovery Service (like Cosmoshield)
If you need assistance on frontrunning the scammers you can ask a recovery service like Cosmoshield (us) to get help. These services are specialised in recovering assets from hacked wallets and have bots which are able to submit transactions very quickly. While there is no guarantee that the recovery succeeds, and everyone giving you a guarantee is not honest, it increases your chances to successfully recover those funds.
Conclusion
Having your subwallet hacked is a situation no one wishes you to have. And while it is very likely that you loose funds there are possibilities, especially through staking, to recover funds that are still in the wallet.
If you have staked funds and decide to use a recovery service feel free to reach out to us at cosmoshield.org.
And if you have further questions or want to get personal help for securing your wallet and keeping your funds safe don’t hesitate to contact us too. We’re here 24/7 to help you navigate your web3 journey.
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