• Home
  • Cyber Crime
  • Cyber warfare
  • APT
  • Data Breach
  • Deep Web
  • Digital ID
  • Hacking
  • Hacktivism
  • Intelligence
  • Internet of Things
  • Laws and regulations
  • Malware
  • Mobile
  • Reports
  • Security
  • Social Networks
  • Terrorism
  • ICS-SCADA
  • POLICIES
  • Contact me
MUST READ

U.S. CISA adds CrushFTP, Google Chromium, and SysAid flaws to its Known Exploited Vulnerabilities catalog

 | 

U.S. CISA urges FCEB agencies to fix two Microsoft SharePoint flaws immediately and added them to its Known Exploited Vulnerabilities catalog

 | 

Sophos fixed two critical Sophos Firewall vulnerabilities

 | 

French Authorities confirm XSS.is admin arrested in Ukraine

 | 

Microsoft linked attacks on SharePoint flaws to China-nexus actors

 | 

Cisco confirms active exploitation of ISE and ISE-PIC flaws

 | 

SharePoint under fire: new ToolShell attacks target enterprises

 | 

CrushFTP zero-day actively exploited at least since July 18

 | 

Hardcoded credentials found in HPE Aruba Instant On Wi-Fi devices

 | 

MuddyWater deploys new DCHSpy variants amid Iran-Israel conflict

 | 

U.S. CISA urges to immediately patch Microsoft SharePoint flaw adding it to its Known Exploited Vulnerabilities catalog

 | 

Microsoft issues emergency patches for SharePoint zero-days exploited in "ToolShell" attacks

 | 

SharePoint zero-day CVE-2025-53770 actively exploited in the wild

 | 

Singapore warns China-linked group UNC3886 targets its critical infrastructure

 | 

U.S. CISA adds Fortinet FortiWeb flaw to its Known Exploited Vulnerabilities catalog

 | 

SECURITY AFFAIRS MALWARE NEWSLETTER ROUND 54

 | 

Security Affairs newsletter Round 533 by Pierluigi Paganini – INTERNATIONAL EDITION

 | 

Radiology Associates of Richmond data breach impacts 1.4 million people

 | 

Fortinet FortiWeb flaw CVE-2025-25257 exploited hours after PoC release

 | 

Authorities released free decryptor for Phobos and 8base ransomware

 | 
  • Home
  • Cyber Crime
  • Cyber warfare
  • APT
  • Data Breach
  • Deep Web
  • Digital ID
  • Hacking
  • Hacktivism
  • Intelligence
  • Internet of Things
  • Laws and regulations
  • Malware
  • Mobile
  • Reports
  • Security
  • Social Networks
  • Terrorism
  • ICS-SCADA
  • POLICIES
  • Contact me
  • Home
  • Breaking News
  • Digital ID
  • Security
  • How Secure Are Bitcoin Wallets, Really?

How Secure Are Bitcoin Wallets, Really?

Pierluigi Paganini October 09, 2018

Purchasers of Bitcoin wallets usually have one priority topping their lists: security. What’s the truth about the security of these wallets?

When buying conventional wallet coins and paper money, people often prioritize characteristics like the size, color, shape, and number of compartments.

However, purchasers of Bitcoin wallets — the software programs that facilitate storing someone’s cryptocurrency-related wealth — usually have one priority topping their lists: security.

So, the companies behind those wallets wisely emphasize why their products are more secure than what competitors offer and why that’s the case. But, beyond the marketing language, what’s the truth about the security of these wallets?

Guessing an Individual Bitcoin Wallet Key Is Tremendously Unlikely, Crypto Expert Says

People appreciate comparisons when thinking about the likelihood something might happen. Brian Liotti of the website Crypto Aquarium had that in mind when he carried out research and found the probability of guessing a Bitcoin key for one wallet is as likely as winning the Powerball nine times in a row.

So, that’s undoubtedly comforting to people who raise their eyebrows at the prospect of using a digital method to store their cryptocurrency investments.

A Wallet Owner Gets Locked out for Months

There’s also the detailed account of Mark Frauenfelder, who owned a Trezor wallet and couldn’t access it for several traumatizing months after misplacing the PIN that served as recovery words for the software. His tale of woe proves a hacker couldn’t contact a Bitcoin wallet manufacturer, masquerade as a wallet owner and get the goods for access.

A Teenager Hacked a Tamper-Proof Wallet

Ledger, a French company that sells Bitcoin wallets, found itself receiving unwanted publicity when a British teenager disclosed a proof of concept that allowed him to break into the Ledger Nano S, a wallet the company had advertised as unhackable. The hack focuses on the device’s microcontrollers.

One of them stores the wallet’s private key and the other acts as a proxy. The proxy microcontroller is reportedly so insecure it cannot differentiate between authentic firmware and that which a cybercriminal creates.

This case study, as well as others associated with less-than-locked-down Bitcoin wallets, emphasizes how people should not get too comfortable after buying a Bitcoin wallet, even one considered as being among the best of the best. The same goes for storing other types of money: Following best practices is always the ideal approach.

If a person owns collector coins, it’s essential to learn how to protect them from potential sources of damage — such as temperature extremes, acids and humidity. Although they exist in the cyber-realm, Bitcoins need safeguards of their own concerning hackers, especially as even the most high-tech options show they need improvement.

Alleged Break-Ins to McAfee’s Wallet

The Bitfi Bitcoin wallet, backed by cybersecurity executive John McAfee, offered a $250,000 bounty to anyone who could successfully hack it. And, in August 2018, a security research firm called OverSoft NL claimed success. The company behind the wallet then issued a second bounty in an attempt to find the weaknesses.

People in the cybersecurity sector expressed their frustrations about the reward, since participants have to abide by the company’s rules. In other words, if cybersecurity experts hacked the wallet in a way the company didn’t specify, they would not win the reward.

But, hacks carried out by malicious players never seem to follow such parameters. Often, they involve unusual methods that exploit vulnerabilities the manufacturer never fathomed. Other people said they had hacked the wallet before OverSoft NL, but not per the company’s rules.

Even representatives from the cybersecurity firm expressed doubts that they’d actually receive the money, believing the bounty to be nothing more than a marketing ploy. The bounty program has since become discontinued, with the company promising to launch another soon.

The Marketing Language Could Tempt Hackers

Whenever something in the tech industry gets presented as impossible to infiltrate, both ethical and malicious hackers frequently see a challenge to try and prove otherwise.

As John McAfee spoke of his wallet on Twitter, the tone could easily come across as overconfident and cocky: “For all you naysayers who claim that ‘nothing is unhackable’ & who don’t believe that my Bitfi wallet is truly the world’s first unhackable device, a $100,000 bounty goes to anyone who can hack it…” And indeed, hackers got to work and accepted the challenge.

Cryptocurrency Wallet Owners Cannot Be Too Careful

Although we’ve seen here how research shows Bitcoin wallet hacks are unlikely and that a wallet owner himself couldn’t even get access to his funds after losing the PIN, case studies show hacks are still possible.

People should always perform adequate research about security measures built into individual wallets but also use them intelligently by following good cyber security habits and never assuming a wallet couldn’t get hacked.

About the author

Kayla Matthews is a technology and cybersecurity writer, and the owner of ProductivityBytes.com. To learn more about Kayla and her recent projects, visit her About Me page.

 

 

[adrotate banner=”9″] [adrotate banner=”12″]

Pierluigi Paganini

(Security Affairs – Bitcoin, cybercrime)

[adrotate banner=”5″]

[adrotate banner=”13″]


facebook linkedin twitter

Bitcoin Digital Currency Hacking wallet

you might also like

Pierluigi Paganini July 24, 2025
U.S. CISA adds CrushFTP, Google Chromium, and SysAid flaws to its Known Exploited Vulnerabilities catalog
Read more
Pierluigi Paganini July 23, 2025
U.S. CISA urges FCEB agencies to fix two Microsoft SharePoint flaws immediately and added them to its Known Exploited Vulnerabilities catalog
Read more

leave a comment

newsletter

Subscribe to my email list and stay
up-to-date!

    recent articles

    U.S. CISA adds CrushFTP, Google Chromium, and SysAid flaws to its Known Exploited Vulnerabilities catalog

    Hacking / July 24, 2025

    U.S. CISA urges FCEB agencies to fix two Microsoft SharePoint flaws immediately and added them to its Known Exploited Vulnerabilities catalog

    Hacking / July 23, 2025

    Sophos fixed two critical Sophos Firewall vulnerabilities

    Security / July 23, 2025

    French Authorities confirm XSS.is admin arrested in Ukraine

    Cyber Crime / July 23, 2025

    Microsoft linked attacks on SharePoint flaws to China-nexus actors

    APT / July 23, 2025

    To contact me write an email to:

    Pierluigi Paganini :
    pierluigi.paganini@securityaffairs.co

    LEARN MORE

    QUICK LINKS

    • Home
    • Cyber Crime
    • Cyber warfare
    • APT
    • Data Breach
    • Deep Web
    • Digital ID
    • Hacking
    • Hacktivism
    • Intelligence
    • Internet of Things
    • Laws and regulations
    • Malware
    • Mobile
    • Reports
    • Security
    • Social Networks
    • Terrorism
    • ICS-SCADA
    • POLICIES
    • Contact me

    Copyright@securityaffairs 2024

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities...
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT