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In extreme cases, Phoenix TV stops working, which forces the payment channel to close, and you can use any wallet compatible with Recovery Seeds to recover your wallet, such as Electrum. After recovery, you only have to wait for a mandatory shutdown to be confirmed 750 times (or about 5 days) in the blockchain to see the funds available. Consider that all funds within Phoenix are in the payment channel.

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Harry Denley, chief security officer of MyCrypto, a cryptocurrencies wallet company, detailed the discovery of the malicious extension in a blog post. Denley explained that the deleted apps impersonate known cryptocurrencies wallets, including Ledger, Trezor, Jaxx, Electrum, MyEtherWallet, MetaMask, Exodus and KeepKey.

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Electrum is a popular software wallet that works by connecting to a dedicated server. These servers receive a hash of the Bitcoin address in the wallet and reply with transaction information. Electrum Wallet is fast and has few resources, but by default, it connects to these servers and can easily monitor users. In addition to Electrum, some other software uses public Electrum servers. By 2019, it is a faster and better alternative to BIP37.

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Hackers launched a denial-of-service (DoS) attack on a well-known wallet Electrum server, according to Johnwick.io. Hackers used botnets of more than 140,000 computers to attack Electrum nodes and simultaneously deployed malicious nodes. When a user connects to these malicious nodes and sends a transaction using an older version of Electrum, the user is prompted to update the Backdoor Client. If the user installs the client as prompted, the private key is stolen and all digital assets are lost. Millions of dollars of digital currency have been stolen, according to Electrum officials. De-dimensional Security Labs recommends that users of electrum wallets be updated to the latest version of the client through the official website and never use the link in the prompt message.