• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Recovery of Lost Bitcoin Wallet Password by Two Hackers

user avatar

by Giorgi Kostiuk

2 years ago


Rediscovery of a Lost Bitcoin Wallet

In a remarkable development, two hackers successfully cracked the password of a long-forgotten digital wallet, leading to the recovery of approximately US$2 million worth of Bitcoin (BTC).

NewsBTC reported that the story dates back to 2013 when an individual known by the alias Michael stored his Bitcoin holdings in a password-protected digital wallet.

Unfortunately, over time, he lost access to the wallet due to the file containing a 20-character password generated using the password manager RoboForm becoming corrupted.

Despite prioritizing security, Michael's concerns about potential hacking led him to not store the password in the manager, inadvertently locking himself out of his assets.

Entry of Two Hackers: Joe Grand and Bruno

In 2022, Joe Grand, a renowned electrical engineer and hardware hacker known as Kingpin, gained recognition for assisting another crypto wallet owner in recovering $2 million worth of digital assets after forgetting the PIN to his Trezor wallet.

Since then, many people approached Grand for his expertise, but he selectively chose his projects.

Two years ago, Michael initially approached Grand for help in recovering his lost Bitcoin. However, due to the unique challenges posed by the software-based wallet, Grand declined the request.

Nevertheless, Michael persisted, and in June last year, Grand agreed to give it another try, collaborating with another hacker named Bruno from Germany.

Months of reverse engineering led Grand and Bruno to a significant breakthrough. They discovered a flaw in the pseudo-random number generator used by the RoboForm program that Michael used in 2013.

The flaw tied the generated password to the user's computer's date and time, making it predictable. With this knowledge, the hackers devised a plan to exploit the flaw and uncover the password.

The main obstacle in this process was Michael's inability to remember the exact date when the password was generated.

However, knowing that BTC was first deposited into the wallet on April 14, 2013, Grand and Bruno configured RoboForm to generate passwords within a specific timeframe, using parameters familiar to Michael.

Persistence Leading to Success

Despite initial failures, Grand and Bruno persisted, adjusting the timeframe and parameters until they finally succeeded. On November 15, 2023, they found the correct password, a 20-character long one generated on May 15, 2013. The long-lost Bitcoin treasure was finally in Michael's possession.

However, the report noted that the success of Michael's asset recovery raised concerns about password security, especially for users generating passwords using older versions of RoboForm.

While Siber Systems, the company behind RoboForm, claimed to have fixed the flaw in 2015, questions remain about the vulnerability of old passwords.

Grand emphasized the importance of understanding the enhancements made in newer password manager versions. He advised users to regularly update their password managers and be aware of the potential risks associated with outdated software.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

SEC Commissioner Hester Peirce Issues Important Statement on Crypto Vaults

chest

SEC Commissioner Hester Peirce has issued a statement on crypto vaults and lending strategies, highlighting that onchain activities are still subject to federal securities laws.

user avatarMiguel Rodriguez

Poolin's Financial Troubles and Auction Plans

chest

Poolin Technology Pte Ltd faced financial troubles starting September 2022, freezing withdrawals for users and issuing IOU tokens instead of repaying customers, affecting about 11,700 wallet holders owed $163.7 million, with recovery dependent on an upcoming asset auction.

user avatarLuis Flores

Poolin Technology Files for Chapter 11 Bankruptcy

chest

Poolin Technology Pte Ltd, a Singapore-based company, filed for Chapter 11 bankruptcy on July 22, 2023, facing over $100 million in obligations with less than $10 million in assets.

user avatarArif Mukhtar

SEC's Division of Enforcement Faces Leadership Transition

chest

Leadership change in SEC's Division of Enforcement as Sam Waldon departs and Osman Nawaz takes over.

user avatarMaria Gutierrez

SEC to Hold Public Roundtable on 24-Hour Trading

chest

The SEC is set to hold a public roundtable on September 17, 2026, to discuss the operational and regulatory issues surrounding the extension of trading hours in US equity markets.

user avatarDavid Robinson

Wall Street Analysts Boost AMD Stock Price Targets Amid AI Innovations

chest

Wall Street analysts are optimistic about AMD's stock price, raising targets due to new AI chips expected to outperform Nvidia.

user avatarAndrew Smith

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.