# How Does a Malicious Attacker Attempt to Steal Funds Using a Compromised Address? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## How Does a Malicious Attacker Attempt to Steal Funds Using a Compromised Address?

If an attacker has compromised the private key or seed phrase, they simply create a new transaction that sends all the funds from the compromised address to an address they control. They then sign this transaction with the stolen private key and broadcast it to the network.

The network validates the signature and processes the transfer, leading to irreversible theft.

- [What Are the Security Risks If a Private Key Is Leaked?](https://learn.greeks.live/path/what-are-the-security-risks-if-a-private-key-is-leaked/)

- [Can a 51% Attack Steal Other Users’ Coins?](https://learn.greeks.live/path/can-a-51-attack-steal-other-users-coins/)

- [How Does a Hardware Wallet Protect the Private Key during a Transaction Signing Process?](https://learn.greeks.live/path/how-does-a-hardware-wallet-protect-the-private-key-during-a-transaction-signing-process/)

- [How Do Private Keys and Public Keys Interact with Smart Contracts?](https://learn.greeks.live/path/how-do-private-keys-and-public-keys-interact-with-smart-contracts/)

- [How Would the Inability to Reverse the Function Break Cryptocurrency Security?](https://learn.greeks.live/path/how-would-the-inability-to-reverse-the-function-break-cryptocurrency-security/)

- [What Is the Relationship between a Public Key and a Private Key in ECDSA?](https://learn.greeks.live/path/what-is-the-relationship-between-a-public-key-and-a-private-key-in-ecdsa/)

- [How Does the Private Key Relate to the Public Key in ECDSA?](https://learn.greeks.live/path/how-does-the-private-key-relate-to-the-public-key-in-ecdsa/)

- [Explain the Relationship between a Private Key, Public Key, and Wallet Address](https://learn.greeks.live/path/explain-the-relationship-between-a-private-key-public-key-and-wallet-address/)

## Glossar

### [Stolen Private Key](https://learn.greeks.live/area/stolen-private-key/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Theft ⎊ Stolen private key refers to the unauthorized extraction of the cryptographic secret that controls a cryptocurrency wallet or smart contract function.

### [Compromised Address](https://learn.greeks.live/area/compromised-address/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Vulnerability ⎊ A compromised address refers to a cryptocurrency wallet or smart contract address where the associated private key or controlling mechanism has been illicitly accessed or exposed to an unauthorized entity.

## Discover More

### [How Does a Time-Lock Protect against a Compromised Owner Key?](https://learn.greeks.live/path/how-does-a-time-lock-protect-against-a-compromised-owner-key/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does a Time-Lock Protect against a Compromised Owner Key?](https://learn.greeks.live/wp-content/uploads/2025/10/Macroscopic-View-of-Teal-Spherical-Opaque-Material-Interfacing-with-Polished-Metallic-Structural-Member-Indicating-Volatility-Surface-Contact.webp)

It forces a delay on malicious transactions signed by the compromised key, giving the community time to detect and react to the attack.

### [How Do Exchange-Traded Funds (ETFs) on Altcoins Manage the Risk of Low-Difficulty Coins?](https://learn.greeks.live/path/how-do-exchange-traded-funds-etfs-on-altcoins-manage-the-risk-of-low-difficulty-coins/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Exchange-Traded Funds (ETFs) on Altcoins Manage the Risk of Low-Difficulty Coins?](https://learn.greeks.live/wp-content/uploads/2025/10/Deep-Blue-Onyx-Encapsulation-Reflecting-Market-Volatility-In-Digital-Asset-Derivatives-Pricing.webp)

Altcoin ETFs would manage risk by diversification, strict custody protocols, and potentially excluding the most vulnerable low-difficulty coins from the basket.

### [How Can a "Dirty" or Compromised NFT Provenance Affect Its Market Value?](https://learn.greeks.live/path/how-can-a-dirty-or-compromised-nft-provenance-affect-its-market-value/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can a "Dirty" or Compromised NFT Provenance Affect Its Market Value?](https://learn.greeks.live/wp-content/uploads/2025/10/Modular-Derivative-Contract-Unwinding-Revealing-Stratified-Liquidity-Pool-Segregation-Mechanisms.webp)

Compromised provenance (theft, illicit activity) is permanently visible, making the NFT undesirable, high-risk, and unusable as collateral.

### [Can a Re-Org Be Non-Malicious (E.g. Due to Network Latency)?](https://learn.greeks.live/path/can-a-re-org-be-non-malicious-e-g-due-to-network-latency/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Re-Org Be Non-Malicious (E.g. Due to Network Latency)?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetrical-Balance-of-Digital-Asset-Execution-Versus-Volatility-Surface-Contraction-in-DeFi-Protocols.webp)

Yes, temporary re-orgs occur naturally due to network latency when two blocks are mined simultaneously.

### [What Is the Mechanism for Removing a Malicious Block Producer?](https://learn.greeks.live/path/what-is-the-mechanism-for-removing-a-malicious-block-producer/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Mechanism for Removing a Malicious Block Producer?](https://learn.greeks.live/wp-content/uploads/2025/10/Sleek-High-Gloss-Biomorphic-Instrument-Displaying-Internal-Quantum-Entanglement-Illumination-Indicative-of-DeFi-Primitives.webp)

Malicious BPs are removed by token holders withdrawing their votes; if their vote count drops below the active set threshold, they are replaced.

### [What Cryptographic Mechanism Is Used to Protect against Malicious Alteration of Transaction Data?](https://learn.greeks.live/path/what-cryptographic-mechanism-is-used-to-protect-against-malicious-alteration-of-transaction-data/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Cryptographic Mechanism Is Used to Protect against Malicious Alteration of Transaction Data?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Digital-Asset-Custody-Sphere-Integrated-with-High-Velocity-Asymmetric-Vehicle-Aerodynamics.webp)

The digital signature is tied to the exact transaction data, so any malicious alteration invalidates the signature and causes the network to reject the transaction.

### [What Is the Burden of Proof for Investors Seeking to Recover Funds in a Crypto-Related Lawsuit?](https://learn.greeks.live/path/what-is-the-burden-of-proof-for-investors-seeking-to-recover-funds-in-a-crypto-related-lawsuit/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Burden of Proof for Investors Seeking to Recover Funds in a Crypto-Related Lawsuit?](https://learn.greeks.live/wp-content/uploads/2025/10/Aerodynamic-Control-Surface-Hinge-Mechanism-Simulation-Data-Fidelity-in-Digital-Asset-Hedging-Instruments.webp)

Investors in a crypto lawsuit must prove they were misled, relied on false information, and suffered a financial loss.

### [Who Receives the Slashed Funds?](https://learn.greeks.live/path/who-receives-the-slashed-funds/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Who Receives the Slashed Funds?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Entropy-Modulation-Across-Decentralized-Exchange-Settlement-Layer-Precision-Machining.webp)

Slashed funds in PoS are often burned, rewarding all token holders, or given to the validator who reported the misbehavior.

### [Can a Malicious Oracle Manipulate the Price of a Crypto Derivative?](https://learn.greeks.live/path/can-a-malicious-oracle-manipulate-the-price-of-a-crypto-derivative/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Malicious Oracle Manipulate the Price of a Crypto Derivative?](https://learn.greeks.live/wp-content/uploads/2025/10/Exposed-Mechanism-Revealing-Precision-in-Decentralized-Finance-Settlement-Layer-Mechanisms.webp)

Yes, a compromised oracle can feed a false price to a derivative contract, causing incorrect liquidation or settlement, highlighting the need for decentralized data sources.

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**Original URL:** https://learn.greeks.live/learn/how-does-a-malicious-attacker-attempt-to-steal-funds-using-a-compromised-address/
