El Salvador's state-controlled Bitcoin wallet, Chivo, finds itself embroiled in yet another data breach incident, as hackers have once again released sensitive information into the public domain.

Anonymous bad actors, operating under the moniker

CiberInteligenciaSV, have leaked portions of Chivo's source code along with VPN credentials for state-operated Bitcoin ATMs in El Salvador. This latest breach, disclosed on the nefarious online platform BreachForums, marks the second breach incident involving Chivo's security infrastructure.

In a chilling message accompanying the leak, CiberInteligenciaSV asserted their motive, stating, "This time I bring you the code that is inside the Bitcoin Chivo Wallet ATMs in El Salvador. Remember that it is a government wallet, and as you know, we do not sell, we publish everything for free for you."

The leak sent shockwaves across the digital security landscape, prompting warnings from entities like VenariX, a digital security startup, which alerted citizens and the broader crypto community of the imminent Chivo leak a day prior to the incident. According to VenariX, CiberInteligenciaSV had hinted at the forthcoming BreachForums post via its Telegram Channel, even extending an invitation to government officials for negotiations.

Chivo, El Salvador's official Bitcoin storage solution, was thrust into the limelight after President Nayib Bukele sanctioned Bitcoin as legal tender in September 2021, a historic move that made El Salvador the first country to adopt Bitcoin on a national scale. Designed to facilitate Bitcoin transactions for Salvadorans, Chivo enables users to buy, sell, and withdraw cryptocurrency from Bitcoin ATMs across the country.

However, the wallet's journey has been marred by technical challenges, including slow execution, app crashes, and other bugs, prompting the government to collaborate with U.S.-based software firm AlphaPoint to address these issues.

The recent breach adds to a series of setbacks for Chivo, following an earlier incident where the personal information of approximately five million Salvadorans was exposed online. Initially mistaken for a vaccination database, the leak, comprising 144GB of data, was later linked to Chivo's sign-up requirements. Despite the severity of these breaches, Bukele's administration has remained silent on the matter, refraining from issuing any official statements or comments regarding the incidents.