Sidehack bitcoin wallet

Scammers are sending fake replacement devices to Ledger customers exposed in a recent data breach that are used to steal cryptocurrency wallets. Ledger has been a popular target by scammers lately with rising cryptocurrency prices and the popularity of hardware wallets to secure cryptofunds. In a post on Reddit, a Ledger user shared a devious scam after receiving what looks like a Ledger Nano X device in the mail. As you can see from the pictures below, the device came in an authentic looking packaging, with a poorly written letter explaining that the device was sent to replace their existing one as their customer information was leaked online on the RaidForum hacking forum.

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Content:

• Criminals are mailing altered Ledger devices to steal cryptocurrency
• 10 Best Crypto Hot Wallets For Beginners
• Cryptocurrency Insurance for “Hot Wallets”
• IOTA cryptocurrency shuts down entire network after wallet hack
• Blockchain
• A hacker stole $31M of Ether — how it happened, and what it means for Ethereum
• Root Cause Estimates
• Side-Channel Attack Shows Vulnerabilities Of Cryptocurrency Wallets

WATCH RELATED VIDEO: Seed Signer - How To Build And Use A DIY Bitcoin Hardware Wallet

Criminals are mailing altered Ledger devices to steal cryptocurrency

Whether you think cryptocurrency is a scam or a salvation, those digital coins can store real-world value. The safest place to keep them is in what's known as a "hardware wallet," a device like a USB drive that stores your currency and private keys locally, without connecting to the internet. But "safest" doesn't mean "perfect," which new research into two popular hardware wallets reinforces all too well.

Researchers from Ledger—a firm that makes hardware wallets itself—have demonstrated attacks against products from manufacturers Coinkite and Shapeshift that could have allowed an attacker to figure out the PIN that protects those wallets. The vulnerabilities have been fixed, and both hacks would have required physical access to the devices, which minimizes the danger to begin with. But Ledger argues that it's still worth holding hardware wallets to the highest standards, just as you would a closet safe.

Some cryptocurrency exchanges are even using hardware wallets for cold storage," another term for systems that keep holdings offline. Shapeshift fixed a vulnerability in its KeepKey wallet with a firmware update in February. If you haven't already, connect your KeepKey wallet to the desktop app to download the update onto your device. A hardware flaw in Coinkite's Coldcard Mk2 wallet persists, but it is fixed in the company's current Coldcard model Mk3, which started shipping in October.

The attack the researchers developed against KeepKey wallets took time to prepare, but with enough planning a hacker could have quickly grabbed a target's PIN in the field. The assault hinges on information that KeepKey wallets inadvertently revealed even when they were locked.

Regular memory chips, like those used in hardware wallets, give off different voltage outputs at different times. In some situations, researchers can establish a link between these power consumption fluctuations and the data the chip is processing when it displays those changes. Such physical tells are known as "side channels," because they leak information through an indirect physical emanation rather than through any direct access to data. This doesn't mean the researchers could magically read PINs from a wallet's chip voltage.

They first needed to use real KeepKey test devices to take thousands of measurements of the PIN processor's voltage output for each value of known PINs. By collecting a sort of decoder of voltage outputs for each phase of PIN retrieval, an attacker could later identify the PIN of a target wallet.

ShapeShift patched the vulnerability in a firmware update that enhanced the security of the PIN verification function. The fix makes it more difficult to develop a reliable catalog of power consumption outputs that map to PIN values. Even if a wallet hasn't received the update, though, KeepKey owners can still add a passphrase—preferably over 37 characters long—to their wallets that acts as a second layer of authentication.

Protect your KeepKey like it could be stolen tomorrow. The other new findings from Donjon focus on the Coldcard Mk2 wallet. The attack would be difficult for a hacker to carry out, because Coldcard uses special secure memory that blocks the type of side-channel attack the researchers launched against the KeepKey wallet and strictly limits PIN guessing.

Coldcard manufacturer Coinkite outsources the chip from the microcontroller company Microchip. But the researchers still found that they could use what's called a "fault injection attack"—a hack that causes a strategic glitch triggering unintended, exploitable computer behavior—to force the chip into an insecure debugging mode.

In this state, the chip's PIN guess limit isn't in effect, meaning an attacker could "brute force" the PIN by trying every possible combination until the wallet unlocks. To trigger the special glitch, the researchers used an impressively outlandish attack, though one that is not inconceivable for a motivated and well-funded adversary.

The fault injection comes from carefully opening the physical case of the Coldcard wallet, exposing the secure chip, physically grinding down its silicon without damaging it, and shining a high-powered, targeted laser on the chip in exactly the right location with precise timing. They are typically used for security and performance testing in smart cards, like those in your credit card or passport.

Fundamental changes were made between mark 2 and 3. Microchip has marked the status of the secure element used in the Coldcard Mk2 as "Not Recommended for new designs. A lot of time and effort went into producing this research. Given that Ledger is a competitor of KeepKey and Coldcard, the potential conflict of interest in the work is obvious. And the Donjon team has a history of finding and disclosing vulnerabilities in wallets from its prominent rivals.

But the researchers say that they spend the vast majority of their time attacking Ledger wallets, and that when they find notable vulnerabilities in their own product they patch them and then post detailed analyses of the bugs. The group has also open-sourced two of its side-channel analysis, measurement, and fault injection tools for other researchers to use. The Donjon researchers emphasize that the most important thing you can do to secure your hardware wallet is to keep it physically safe.

If you're storing a few thousand dollars' worth of cryptocurrency, you likely won't have elite criminal hackers or nation-backed spies breaking into your house to shuttle your wallet to their state-of-the-art laser lab.

But it's worth keeping in mind that even when you intentionally prioritize security by opting for something like a hardware wallet, it can still have weaknesses.

Updated May 28, 6pm ET with details about the Microchip secure enclave used in the Coldcard Mk2 and other devices.

She previously worked as a technology reporter at Slate magazine and was the staff writer for Future Tense, a publication and project of Slate, the New America Foundation, and Arizona State University.

Read more. Senior Writer Twitter. Topics hacking security cryptocurrency bitcoin vulnerabilities.

10 Best Crypto Hot Wallets For Beginners

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Cryptocurrency Insurance for “Hot Wallets”

The use and acceptability of virtual currencies also exploded, as have the number of tokens and investors. However, with the rise in popularity, thefts, frauds, and hacks have also increased. Because the legislative structure for virtual currencies is still hazy, owners sometimes have little legal recourse in the event of fraud or theft. A cryptocurrency wallet is a mobile device, physical media, application, or service that holds the public and private keys for cryptocurrency transactions. Moreover, a cryptocurrency wallet typically includes the ability to encrypt and sign information in addition to the fundamental function of holding keys. On the other hand, a cold wallet is a tiny encoded portable device, which enables you to download, carry, and use Bitcoin and other coins for later transactions. Satoshi Nakamoto created the first cryptocurrency wallet when he released the Bitcoin protocol in Although Bitcoin is the most well-known cryptocurrency, others based on its blockchain technology have developed as well.

IOTA cryptocurrency shuts down entire network after wallet hack

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Blockchain

The attack happened this week, Wednesday, on February 12, , according to a message the foundation posted on its official Twitter account. We are currently investigating a suspicious situation with Trinity, please do not open or use Trinity on Desktop until further notice. IOTA Trinitywallet. According to a status page detailing the incident, within 25 minutes of receiving reports that hackers were stealing funds from user wallets, the IOTA Foundation shut down "Coordinator," a node in the IOTA network that puts the final seal of approval on any IOTA currency transactions. The never-before-seen move was meant to prevent hackers from executing new thefts, but also had the side-effect of effectively shut down the entire IOTA cryptocurrency.

A hacker stole $31M of Ether — how it happened, and what it means for Ethereum

Bitfinex told the Reuters news agency on Wednesday that nearly , bitcoin were stolen from its exchange platform. All transactions on the virtual exchange have been suspended while the security breach is investigated. In a statement on its website, Bitfinex said that it was "deeply concerned about the issue and we are committing every resource to try to resolve it". The hack is one of the biggest thefts in bitcoin's history and is being treated as a "major deal" by many in the virtual currency community. Securing bitcoin trading platforms has been a key challenge, with hacking and thefts seen as the biggest threats.

Root Cause Estimates

They have major advantages over standard software wallets. The disadvantage is if you happen to lose that piece of device, you lose everything. This includes a faulty device. The best option is not to store all of your BitCoins in 1 place, spread them out over a few devices, this includes online and software too.

Side-Channel Attack Shows Vulnerabilities Of Cryptocurrency Wallets

When it comes to security, many people think of Binance as the most secure cryptocurrency exchange in the world. What drives this perception of our security? We achieve it through relentless efforts to safeguard our entire platform, from using the latest technology, to helping individual users protect their accounts. With that said, it has been no easy task. We prevent more than a few dozen hacking attempts each day on average and we have encountered just about every possible irregular activity. To ensure our user funds remain safe, we approach security from various fronts, from technology and investments to people and education.

While innovation is a driver of economies and development it can sometimes become a means of wrongdoings disrupting the fabric of societies. Digital currencies and their use cases have often been looked down upon especially due to their usage for illicit purposes. In a recent case, an investigation into a crypto wallet hack in India has allegedly revealed that the Palestinian militant group Hamas could be behind the crime. As reported by several local Indian news organizations, the stolen crypto was then transferred to cold wallets before allegedly landing with the terrorist group operating in Gaza. The military wing of Hamas is renowned for using stolen and donated cryptocurrency to finance terrorism.

We should expect this number to increase in as governments and cybersecurity experts warn that hackers will seek to take advantage of the coronavirus crisis to infiltrate corporations and as a vast number of employees move to teleworking. On the flip side, hot wallets have the advantage of providing individuals with quick access to their cryptocurrency. It is common for owners of cryptocurrency to have both hot and cold wallets.