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Millions of crypto wallets at risk due to overlooked code flaw

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An undetected vulnerability in the code used to generate cryptographic keys for wallets has jeopardized the security of millions of crypto wallets. The issue came to light when a technology entrepreneur sought assistance in recovering $600,000 in Bitcoin, exposing a significant security flaw that endangers crypto assets.

Wide-ranging impact on crypto wallet security

The flaw, stemming from inadequately random key generation, has the potential to impact a large number of wallets. Those created before March 2012 are especially at risk, with an estimated $100 million in Bitcoin in jeopardy. Moreover, wallets created until the end of 2015, containing roughly $50 billion in BTC, are also vulnerable, with at least 2% of them at risk due to weak randomization.

Eric Michaud, co-founder of Unciphered, emphasized the severity of the situation by stating, “BitcoinJS is terribly broken up till March 2014. Anyone directly using it is on the very high end of risk to attack.”

Efforts to mitigate the risk

In response to the discovery, Unciphered is taking measures to alert the public and urging wallet owners to transfer their funds to more secure storage. A partnership with Blockchain.com aims to update and notify over 1.1 million users with at-risk wallets.

This incident highlights the crucial need for robust security protocols in the realm of digital currency and underscores the importance of proactive and vigilant measures to safeguard investors as the crypto market continues to expand.

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