Researchers have successfully unlocked a Bitcoin wallet containing $3 million after the owner forgot the password for 11 years. The wallet, which held 43.6 BTC, was finally accessed thanks to the efforts of ethical hackers who exploited a flaw in an old password manager.

Key Takeaways

  • A Bitcoin wallet containing $3 million was unlocked after 11 years.
  • Ethical hackers Joe Grand and Bruno cracked the password.
  • The password was generated using RoboForm, which had a flaw in its random number generator.
  • The wallet owner, known as Michael, had stored the password in an encrypted file that got corrupted.
  • The value of Bitcoin has significantly increased since the wallet was created.

The Forgotten Password

In 2013, a man known only as Michael created a Bitcoin wallet and generated a 20-character password using the RoboForm password manager. Concerned about security, he stored the password in an encrypted file using TrueCrypt. Unfortunately, the file became corrupted, and Michael lost access to his 43.6 BTC, which was worth around $5,300 at the time.

The Search for Help

Michael initially lost hope of ever recovering his Bitcoin. However, in 2022, he reached out to Joe Grand, an electrical engineer and ethical hacker known for his expertise in recovering lost cryptocurrency. Grand had previously helped another individual recover $2 million in cryptocurrency. Despite turning down many similar requests, Grand decided to take on Michael’s case.

Cracking the Code

Grand and his colleague Bruno spent months reverse-engineering the version of RoboForm that Michael had used. They discovered that the password manager’s random number generator was flawed, as it tied the generated passwords to the date and time on the user’s computer. By setting the system clock back to 2013 and using the same parameters, they were able to regenerate the original password.

The Moment of Success

After numerous attempts and adjustments, Grand and Bruno finally cracked the code. The correct password was generated on May 15, 2013, at 4:10:40 PM GMT. Michael was able to access his wallet, which had grown significantly in value due to the rise in Bitcoin prices.

A Fortunate Outcome

Michael sold some of his Bitcoin when the price reached $62,000 per coin, rewarding Grand and Bruno with a portion of the recovered cryptocurrency. He now holds 30 BTC, worth approximately $2 million, and plans to sell the rest when Bitcoin reaches $100,000 per coin. Michael considers himself lucky for losing the password, as it prevented him from selling his Bitcoin at a lower price earlier.

Lessons Learned

This story highlights the importance of securely storing passwords and the potential risks of relying on flawed password managers. It also underscores the value of ethical hackers in recovering lost digital assets. As Bitcoin and other cryptocurrencies continue to grow in popularity, the need for robust security measures becomes increasingly critical.

Sources

Share.
Leave A Reply