[HN Gopher] Researchers cracked an 11-year-old password to a $3M...
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       Researchers cracked an 11-year-old password to a $3M crypto wallet
        
       Author : ColinWright
       Score  : 108 points
       Date   : 2024-05-28 18:32 UTC (4 hours ago)
        
 (HTM) web link (www.wired.com)
 (TXT) w3m dump (www.wired.com)
        
       | Ajay-p wrote:
       | https://archive.is/BZal2
        
       | malshe wrote:
       | > Michael says he was lucky that he lost the password years ago
       | because, otherwise, he would have sold off the bitcoin when it
       | was worth $40,000 a coin and missed out on a greater fortune.
       | 
       | This is so true for stocks too
        
         | INTPenis wrote:
         | Yes but stocks are usually tied to a business producing some
         | sort of service that people want, and therefore have value.
         | Crypto is tied to, _checks notes_ nothing.
        
           | jen729w wrote:
           | I'm no shill for crypto, but you can't with a straight face
           | claim that all non-crypto financial instruments are 'tied to
           | ... some sort of service that people want'.
           | 
           | There's a whole world of shady crap going on in the
           | 'legitimate' financial space.
        
             | INTPenis wrote:
             | Oh absolutely. Money is the root of all evil.
             | 
             | But crypto bros are often delusional about what intrinsical
             | value exists in the normal market, compared to crypto coins
             | where they invent the value. Therefore manipulation of
             | value compared to real world markets becomes a lot more
             | abstract.
        
               | ColinWright wrote:
               | The original saying is:
               | 
               | "For the love of money is the root of all evil: ..." -- 1
               | Timothy, 6:10
               | 
               | It's not the money that is evil, it is the things we do
               | because of the desire we have for it.
        
           | kube-system wrote:
           | I hate on crypto any chance I get, but crypto has damn near a
           | monopoly in facilitating black and/or grey market electronic
           | transactions.
           | 
           | It is very in demand, for instance, in helping dictators
           | evade sanctions, or helping criminals extort or trade
           | illegally.
        
       | coffeeri wrote:
       | The original video by Joe Grand: https://youtu.be/o5IySpAkThg
        
         | Stagnant wrote:
         | Highly recommended, didn't think I'd watch the whole thing but
         | the production quality was great and it explains everything
         | much better than the wired article.
        
           | dylan604 wrote:
           | After your reco after the GP's reco, I would have to agree.
           | This is well done. However, coming from a coding/dev
           | background, it was easy to follow and it all makes sense.
           | 
           | However, it goes to show why hacking will never be made
           | interesting in movies without a bunch of fake nonsense like
           | hacking the Gibson's 3D virtual environment.
        
             | kevindamm wrote:
             | The best and worst examples were in the same movie, IMO:
             | Nedry's finger-wagging admonishment and all hell breaking
             | loose, then later, "it's a Unix system, I know this!" and
             | some exotic file manager visualization.
        
       | therein wrote:
       | So the version of password manager he was using was vulnerable
       | because it was generating low entropy passwords.
       | 
       | They also found the seed was from time and knew when he had
       | created it.
       | 
       | He got lucky there a little.
        
         | dylan604 wrote:
         | > He got lucky there a little.
         | 
         | Who is he in that sentence? Do you mean the owner of the wallet
         | who is absouletly very lucky, or the hackers that did a lot of
         | investigating and reverse engineering to learn that the
         | datetime was the seed. Was that luck or l337skillz?
        
           | jrflowers wrote:
           | I'm going to guess it's the same "he" from the sentence that
           | came immediately before the one you quoted
        
           | brailsafe wrote:
           | Seems like they all were lucky that he luckily used a
           | vulnerable password manager and knew the approximate
           | parameters and time it was created. If he didn't get lucky,
           | they might not have been paid.
        
       | alexwasserman wrote:
       | Time for a new investment strategy that involves buying whatever
       | (index funds?) then losing your password to force a hold till the
       | encryption algo has been cracked or compute power makes it easy
       | to brute-force.
       | 
       | Call it the Moore's Law Fund.
        
         | buildbot wrote:
         | An interesting but not entirely practical offshoot of this idea
         | is a fund that buys (collects legally?) wallets with lots of
         | crypto & lost passwords and tries to crack them over time.
        
           | sandworm101 wrote:
           | Or just buy random used digital storage devices in bulk and
           | scan them for potential wallets, or other marketable data.
           | Half the "broken" USB drives out there still have plenty of
           | retrievable data on them. It would be like the "Storage Wars"
           | show, but digital.
           | 
           | (Fyi, one very marketed video tape was discovered when the
           | contents of a certain celeb's storage locker was put up for
           | auction. Imagine the possibilities if one collected all the
           | storage devices thrown away in a particular LA neighborhood.
           | Or DC.)
        
             | kube-system wrote:
             | I don't think it's necessarily legal (at least in some
             | jurisdictions) to collect bitcoin that way, even if you've
             | legally obtained the storage device.
        
           | paulpauper wrote:
           | This is already done. The feds and hackers have huge troves
           | of wallets and files that they are trying to crack, either by
           | finding holes in the encryption method used or brute force.
        
         | sneak wrote:
         | This is already how bitcoin mining works. Compute is used to
         | calculate partial hash collisions via brute force. The number
         | of bits required in the collision adjusts dynamically based on
         | the duration of the last 2016 blocks. If you're the first to
         | find a valid collision for the next block, you get 3.125 BTC.
        
           | alexwasserman wrote:
           | Less fun with a 10 minute lockup till the next block
        
         | ljlolel wrote:
         | Best if you just try to lose half the password so you have an
         | advantage on cracking it.
        
       | hartator wrote:
       | > They really annoyed me, because who knows what I did 10 years
       | ago,
       | 
       | He doesn't seem to be very thankful.
        
         | floam wrote:
         | I think it's an artifact of translation or ESL. Imagine he said
         | "pestered". I don't think he necessarily meant the effect it
         | had on his mood.
        
       | declan_roberts wrote:
       | It's not clear how datetime was used and why that became a
       | weakness? Doesn't it improve the password security by taking some
       | bytes from /dev/random and salting it with <timestamp>?
        
         | Stagnant wrote:
         | The roboform password manager used datetime value as the seed
         | of the pseudorandom generator, meaning that it would always
         | generate the same password if the system clock time was the
         | same. They managed to crack the wallet by reverse engineering
         | the password manager and feeding its pseudonumber generator all
         | datetime values between certain dates that were thought to be
         | near the time when the original wallet owner had generated the
         | password.
        
         | fragmede wrote:
         | yes so knowing the datetime that was used to salt reduces the
         | search space.
        
           | JohnKemeny wrote:
           | Salt is not the same as seed.
        
       | arp242 wrote:
       | So Roboform has almost certainly thousands (of not millions) of
       | users with weak passwords, and not only didn't they tell anyone,
       | all they give is a shrug when asked about it.
       | 
       | What a bunch of bozos.
        
         | paulpauper wrote:
         | Because the vast majority of ppl who use it will not be storing
         | millions of dollars of crypto with it. Crypto changes the game
         | totally.
        
           | yreg wrote:
           | No it doesn't. What kind of an excuse is that?
           | 
           | When a password manager maker finds a vulnerability they
           | should absolutely tell their users to regenerate their
           | passwords!
        
             | paulpauper wrote:
             | didn't the vendor fix it?
        
               | yreg wrote:
               | They are supposed to disclose the vulnerability after
               | fixing it, so their users know they need to take action.
               | That's what the original commenter rightly complained
               | about.
        
           | wepple wrote:
           | Crypto doesn't change the game. Products that generate
           | passwords should do so securely.
           | 
           | You may be using it to protect extremely sensitive
           | information that could have people killed - that's more
           | important than a few million dollars in imaginary money
        
           | arp242 wrote:
           | People have bank passwords, social media accounts (which can
           | be used in all sorts of nefarious ways), etc. Some may be 2FA
           | protected, some may not be. Some may be protected by bad
           | faux-2FA.
           | 
           | Just because there aren't million at stake doesn't mean you
           | can't bring someone to ruin.
        
         | PUSH_AX wrote:
         | I mean how weak are they really? These guys knew the algo and
         | still struggled and pestered the user over and over for the
         | other parameters. They also had what I would describe as an
         | extreme motivation to crack this.
        
           | arp242 wrote:
           | Hard to say without details; but now that the weakness is
           | known it may become a lot easier. It's one thing if you
           | _think_ it _may_ work if you have the correct parameters but
           | aren 't sure, and quite another if you _know_ it _will_ work.
           | 
           | Password managers are kind of a "defence in depth" thing;
           | practical speaking, a passwords.txt opened with notepad is
           | probably fine for many people. No one is in your computer
           | checking your files. You have a password manager for when
           | that _does_ happen, just in case. And usually this tends to
           | be a targetted attack, which can range from some country 's
           | secret service to a jealous spouse to a trolling sibling. If
           | that extra protection is ineffective ... yeah, that's not
           | great.
           | 
           | This really is "better safe than sorry" type territory.
           | Password managers (including Roboform) already do this by
           | notifying users a password _may_ be insecure after a leak. A
           | lot of the time that 's not really needed if your password is
           | sufficiently secure, but "better safe than sorry". This is
           | not all that different.
        
       | kick_in_the_dor wrote:
       | "Michael... now has 30 BTC, now worth $3 million, and is waiting
       | for the value to rise to $100,000 per coin."
       | 
       | What the ? You presumably go from _not a millionaire_ to having
       | $3,000,000, and you decide to risk it to triple it? That 's some
       | next level greed right there.
        
         | pjkundert wrote:
         | How do you know he isn't hedged?
         | 
         | NOT keeping it in Bitcoin is some next-level stupidity, by the
         | simple analysis of trends over the time he's held it.
         | 
         | And the inflation produced by the creation of broad money over
         | the last 3 years hasn't even come home to roost, yet.
         | 
         | I'd say he's being ruthlessly analytical, not greedy.
        
           | metabagel wrote:
           | Past performance does not guarantee future results.
        
             | kube-system wrote:
             | True, but if he were looking for _guaranteed_ returns he
             | picked the wrong investment. I presume this person is has
             | some level of risk tolerance far exceeding zero.
        
         | BLKNSLVR wrote:
         | FYI he's not gambling the bitcoin, he's holding onto it, and
         | given it's history, which is the sub-story, it seems to be the
         | smart thing to do, not the risky/ dumb thing to do, especially
         | in the current stage of the cycle.
        
       | ggm wrote:
       | What was their fee?
        
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       (page generated 2024-05-28 23:01 UTC)