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How Hackers Unlocked a $3 Million Bitcoin Wallet After 11 Years: The Inside Story

Unveiling the Hack

 


In an intriguing turn of events, a group of hackers managed to unlock a Bitcoin wallet worth $3 million, a feat that took over a decade to accomplish. Joe Grand, an electrical engineer and renowned hacker who goes by the handle ‘Kingpin,’ recently shared how he and his team achieved this incredible feat.

The Journey to Recovery

The story begins with an anonymous cryptocurrency owner who lost access to his wallet 11 years ago. The owner, plagued by paranoia over security breaches, had used Roboform, a random password generator, to secure his Bitcoin wallet. Unfortunately, he forgot the password, rendering the substantial amount of cryptocurrency inaccessible as Bitcoin's value skyrocketed by over 20,000 percent since 2013.

Enter Joe Grand

Joe Grand, known for his expertise in recovering lost digital assets, was the ideal person to tackle this challenge. Grand had previously helped another crypto owner recover $2 million in cryptocurrency, earning him a reputation for his skills in the hacker community. Despite numerous requests for assistance, Grand chose to take on this particular case.

Cracking the Code

In a YouTube video, the wallet's owner explained his security measures: "I generated the password, I copied it, put it in the passphrase of the wallet, and also in a text file that I then encrypted." However, as time passed, the owner lost access to the encrypted file, leaving the Bitcoin wallet locked.

Grand and his colleague Bruno decided to use a tool developed by the US National Security Agency (NSA) to disassemble Roboform's code. This old version of Roboform had a crucial flaw: while it appeared to generate random passwords, it actually produced predictable outputs if the time was controlled.

The Breakthrough

Grand exploited this flaw by setting the system clock back to 2013, the year the password was created. By doing so, they could predict the password generated at that specific time. This clever manipulation allowed them to crack the code, ultimately unlocking the Bitcoin wallet.

A Stroke of Luck

Despite their technical prowess, Grand admitted that luck played a significant role in their success. "We ultimately got lucky that our parameters and time range was right. If either of those were wrong, we would have … continued to take guesses/shots in the dark," he told Wired.

The Broader Impact

This story highlights the multifaceted nature of hacking, which is often misunderstood as purely malicious. In reality, hackers like Grand use their skills to enhance security and recover lost assets, providing valuable services to those in need.

Conclusion

The unlocking of a $3 million Bitcoin wallet after 11 years showcases the blend of technical skill and a bit of luck. Joe Grand and his team's achievement not only recovered a significant amount of cryptocurrency but also underscored the potential positive impacts of hacking expertise.



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Vertical Bar Media

If you need expert assistance with your digital assets or improving your cybersecurity contact Vertical Bar Media.

Source: Unilad

Photo Credit: Joe Grand/Youtube

Social Media Hashtags: #bitcoin #hacker

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