The cryptocurrency exchange called Local Bitcoins has issued a warning to its users about a possible security risk that is associated with the or Browser. Tor Browser is an anonymous browser. Local Bitcoins is a peer-to-peer digital coin exchange base in Finland.
On September 9, a transaction compliance expert, Richard Bensberg, took a screenshot of a Local Bitcoins alert warning Tor users about a security problem related to the loss of Bitcoins. He released this on Twitter. The warning was addressed to all Tor users and explained that the Tor browser puts the users at risk of having their Bitcoins stolen.
The Local Bitcoins exchange responded to the warning. It said that although the Tor Browser is not a violation of its terms of service, it also does not recommend using it because of known security problems. Local Bitcoins did not say what about Tor makes a user more susceptible to Bitcoin theft.
The security expert was critical of Local Bitcoins. He said that they lost the plot by just putting up a banner warning on a browser that generally receives a lot of praise for anonymity and private browsing.
The Tor browser is the initial product released by the Tor Project. It is a firm that stands behind the anonymous and private Tor Network. In July 2019, a news outlet reported that the Tor Project had a crowd funding campaign called Bitcoin for Tor. That campaign reached the $10,000 soft market cap about 25 hours after it was launched.
In two weeks, the crowd funding campaign raised about $18,892 in order to support its privacy and digital freedom goals. The Tor business has a lot of fans, including the infamous Edward Snowden, who rose to fame by leaking security information and seeking asylum in Russia.
At the same time, Local Bitcoins saw a drop in its trading volume, report several of the industry's top analysts. This happened after June 18, when it changed some of its policies. It also set up four account tiers with a verification system. Those tiers have different limits for placing ads and selling Bitcoins.