Google has managed to identify and fix a problem that started plaguing users of the bitcoin wallet extension KryptoKit yesterday and caused many to worry that their bitcoins might be irretrievably lost.

Early on 20th May, KryptoKit users started reporting that the extension was mysteriously removing itself from Chrome without prior notice. They also found that the extension had disappeared from the Chrome app store.

KryptoKit project

developers tried their best to work out a solution, but it soon became apparent that Google itself was behind the abrupt removal.

Google reinstated KryptoKit’s account a few hours after the issue was detected, but, it did not offer an explanation at the time.

Finally, Google’s Chrome team took to reddit last night to explain what happened, with Google Chrome Product Manager Tyler Odean apologizing for the confusion and explaining what caused the problem.

Odean stressed that no data was compromised or removed from user machines at any point, adding:

The post indicated that the malware developer was trying to steal bitcoin keys using the KryptoKit codebase to build their own malicious extension. Much of the code was identical, so Google flagged the real KryptoKit extension, blacklisting it along with the malware version.

As soon as the issue made it to reddit, the team realised the mistake and reenabled KryptoKit on users' machines.

Tyler went on to point out that Google has not changed its stance on bitcoin:

Interestingly, Odean said many Chrome team members are bitcoin enthusiasts, and ended his reddit post with a strong hint that he is too: “Cheers, Tyler, Bullish”.

Google image via lightpoet / Shutterstock.com