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[return to "Feds arrest couple, seize $3.6B in hacked Bitcoin funds"]
1. danso+T4[view] [source] 2022-02-08 17:10:48
>>mikeyo+(OP)
The statement of facts is linked to from the press release, and describes generally how the Feds were able to trace the stolen funds (they found a file listing private keys, after gaining access to the suspect's cloud storage) https://www.justice.gov/opa/press-release/file/1470186/downl...

> The 2017 transfers notwithstanding, the majority of the stolen funds remained in Wallet 1CGA4s from August 2016 until January 31, 2022. On January 31, 2022, law enforcement gained access to Wallet 1CGA4s by decrypting a file saved to LICHTENSTEIN’s cloud storage account, which had been obtained pursuant to a search warrant. The file contained a list of 2,000 virtual currency addresses, along with corresponding private keys.

> ...The connection among the VCE 1 accounts was further confirmed upon reviewing a spreadsheet saved to LICHTENSTEIN’s cloud storage account. The spreadsheet included the log-in information for accounts at various virtual currency exchanges and a notation regarding the status of the accounts

> ...Lichtenstein Email 2 was held at a U.S.-based provider that offered email as well as cloud storage services, among other products. In 2021, agents obtained a copy of the contents of the cloud storage account pursuant to a search warrant. Upon reviewing the contents of the account, agents confirmed that the account was used by LICHTENSTEIN. However, a significant portion of the files were encrypted

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2. colinm+h5[view] [source] 2022-02-08 17:12:09
>>danso+T4
$4 billion has got to buy an awful lot of compute time, but still, how did they decrypt the file?
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3. raverb+P5[view] [source] 2022-02-08 17:14:10
>>colinm+h5
A fancy (or even basic) dictionary attack has a very high chance of working.
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4. paulpa+oo[view] [source] 2022-02-08 18:24:43
>>raverb+P5
It doesn't unless you chose something stupid like "correct horse battery staple" or "word + word + number". 7 words chosen from 1000 word dictionary password encrypted AES 256 cannot be cracked with existing technology, 8 words impossible with future tech.
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5. johndo+Al2[view] [source] 2022-02-09 07:04:20
>>paulpa+oo
That depends entirely on the hash function being used.

With a bad choice like SHA256, a 7 word passphrase could be cracked in as little as a few months with a single ASIC. The US government probably has a bunch of them already, so I think that an 8 word passphrase is already within reach for current tech.

Of course, with a real key derivation function like Argon2id, things would look much better.

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