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Report: Crypto Adopters Using Tor Browser Risk Losing Their BTC

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Localbitcoins warns users against using Tor browser

Tor browser-using bitcoin (BTC) holders are at risk of losing their holdings according to Localbitcoins crypto exchange. The Finnish crypto exchange warned its users that using Tor browser exposes them to security risks. Localbitcoins posted a banner warning on its site on September 9 urging users to beware.

Richard Bensberg, a transactional compliance officer took a screenshot of this banner and posted it on Twitter.

The banner read,

After getting wind of Bensberg’s post, Localbitcoins responded saying that using Tor browser is not against its terms of service. The exchange added that it, however, does not recommend using the browser for security reasons.

However, Bensberg did not agree with the exchange. He went on to state the Localbitcoins had “really lost the plot”. According to him, the exchange should not have put up the banner warning against a browsing tool that is famous for its privacy and anonymity.

Tor Project Background

Tor browser is the best yet product of the Tor Project, the firm that created the anonymous Tor network. Reportedly, the firm’s crowdfunding campaign dubbed “BitcoinForTor” raised $10,000 in July. These funds saw the Tor Project reach its soft cap in just 25 hours after rolling out the campaign.

The BitcoinForTor campaign ran for two weeks and raised a total of $18,892. The firm unveiled that it sought to use these funds to support the global community dedicated to human rights. According to the company, these rights include privacy and online freedom.

While the firm is fairly new, it has a host of renowned advocates. Examples are NSA leaker Edward Snowden and Nicolas Dorier, Metaco SA’s software developer.

This news comes as Localbitcoins’ trading volume continues plunging following a policy change in early June. The exchange reportedly removed the option for users to perform local cash trades.

Explaining why it had to eliminate local cash trades, the exchange said,

In order to adapt to the current regulatory environment, we had to reconsider our policy on local cash trades as well as on geographical areas where our service is available, among other platform features. As a consequence, advertisements in the cash category (i.e. local cash trades) were disabled in our platform on Saturday 1st June.

In mid-June, Localbitcoins tightened policies once again by adding four different account tiers within its verification system. In so doing, the exchange placed limits on selling bitcoin (BTC) and posting ads on its platform.

Do you think Tor browser has security risks that pose a threat to BTC holders? Let us know in the comments below.

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