Categories: Bitcoin News

This Popular Hardware Wallet Can Be Breached Physically in 15 Minutes – Kraken

Hardware wallets have a reputation of being one of the safest wallets for storing cryptocurrency. Though they are more expensive option, many cryptocurrency investors prefer…

advertisement

Hardware wallets have a reputation of being one of the safest wallets for storing cryptocurrency. Though they are more expensive option, many cryptocurrency investors prefer them over soft wallets and paper wallets. However, Kraken Security Labs has found a serious flaw with Keepkey Hardware wallets, which makes them susceptible to getting breached easily.

Advertisement

This Glitching Device Can Help Break Into Keepkey

Per a blog published by Kraken Security Labs, there is a way by which seeds can be extracted from a Keepkey hardware wallet. It only takes a hacker about 15 minutes with the wallet to extract the seeds.

Source: Kraken Blog

The breach takes place with a voltage glitching device, which, according to Kraken Security Labs, can be developed for $75. Though the encrypted seeds in the wallet are protected by a 1-9 digit pin, they are not immune to brute force, and using the voltage glitching device, they can be accessed easily. According to the blog, the microcontroller has inherent flaws which the attack exploits, and there is no other way to fix it except for a hardware redesign.

The blog recommends that the users should not allow physical access to the wallet, and warns that if users lose their Keepkey then their cryptocurrency is at a risk of being stolen with this attack. It also recommends users to enable their BIP39 Passphrase with the KeepKey Client.

Keepkey’s Response to the Findings

Keepkey has responded to the Kraken blog, saying that they are already aware of the issue, and at the time the issue had been identified, they had advised their users to use the BIP39 passphrase. In the blog, they also stated that the claim that the wallet can be hacked in 15 minutes is misleading –

Advertisement

“It’s misleading to claim the device can be hacked in 15 minutes. Executing this attack requires significant preparation and expertise as well as specialized equipment, and assumes physical possession of the device.”

Nevertheless, they have emphasised on securing cryptocurrency against attacks using BIP39 passphrase, and not allowing others physical access to the Keepkey hardware wallet.

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

Vinnie Singh

All things Blockchain & Crypto. 3 years for writing for Crypto Publications, ICOs and Blockchain cos. Book Junkie. Travel Freak. Food rules my mood. Enough said. Follow me on twitter @vinniesingh7 or mail me at vinnie[at]squadx.io

Recent Posts

Litecoin [LTC] Price Analysis – January 24th

LTC/USDT Daily Chart Perceiving LTCUSDT’s chart, price action is current trading under a key Daily…

2 hours ago

No More Bitcoin (BTC) Selling As On-Chain SOPR Resets to 1

The possibility of any more Bitcoin (BTC) selling further seems to be negligible as of…

11 hours ago

Bitcoin Mining Difficulty Rises to ATH amid Market Wide Shortage of Mining Chips

Bitcoin mining difficulty has peaked to a new all-time-high almost for the first time in…

1 day ago

Will ETH Price Triumph Or Reject at All time High, Price Action in In-decision on Weekly

ETH Price action is likely to range between these two regions, breaking either will likely…

1 day ago

Polkadot(DOT) Price Establishing a key Weekly Range, Will DOT Price Swing High Past ATH?

DOT price is  important weekly close coming up that will determine the momentum of the…

1 day ago