{"id":82883,"date":"2023-08-10T16:00:00","date_gmt":"2023-08-10T13:00:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=82883"},"modified":"2025-09-12T07:44:51","modified_gmt":"2025-09-12T04:44:51","slug":"how-hackers-break-crypto-wallets-six-major-vulnerabilities","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/how-hackers-break-crypto-wallets-six-major-vulnerabilities\/","title":{"rendered":"How hackers break crypto wallets: six major vulnerabilities"},"content":{"rendered":"<p>A private key in most blockchains is a 256-bit string: brute-forcing such a password for a given address would take millions of years of computing power.<\/p>\n<p>However, crypto wallets remain vulnerable to hacker attacks\u2014due to bugs in applications and user errors. We outline six methods of intrusion and explain how to safeguard funds from theft.<\/p>\n<h2 class=\"wp-block-heading\">1. Weak Address \u2014 Vulnerable keys<\/h2>\n<p>Due to a flaw in the random number generator (RNG), a wallet can generate a private key with only a few random bytes. Ideally, the application would operate as follows:<\/p>\n<ol class=\"wp-block-list\">\n<li>It generates a random number of the specified length.<\/li>\n<li>It converts it to the short-format key for the corresponding blockchain.<\/li>\n<li>It generates the public address from the key.<\/li>\n<\/ol>\n<p>In this case, the number <em class=\"lng_str\">fffffffffffffffffffffffffffffffebaaedce6af48a03bbfd25e8cd0364110<\/em> is transformed into the key <em class=\"lng_str\">5Km2kuu7vtFDPpxywn4u3NLpbr5jKpTB3jsuDU2KYEqeoQJAair<\/em>, which controls the address <em class=\"lng_str\">1CaZUpjd7VmsyWDFrk9WG9nTYMLcLLvvCw<\/em>.<\/p>\n<p>But occasionally the RNG makes a mistake and <a href=\"https:\/\/blocking.net\/3520\/how-to-steal-the-key-of-ethereum-wallet-part1\/\">generates<\/a> a string with a lot of zeros like <em class=\"lng_str\">0000000000000000000000000000000000000000ffa3cafff0000000000000000<\/em> instead of a truly random number. Hackers call such wallets Weak Addresses.<\/p>\n<p>Attackers create bots. Their algorithms regularly check the balances of weak addresses on Bitcoin and Ethereum networks. If a user generates such an address and sends cryptocurrency to it, the bot immediately steals it.<\/p>\n<p><strong>How to protect yourself:<\/strong> after creating a wallet, verify that the characters are indeed random. Use open-source tools such as <a href=\"https:\/\/github.com\/teamswipp\/swippcore\/blob\/master\/wif-converter.py\">Swippcore<\/a> to convert the short-format key to the long format on your local machine.<\/p>\n<h2 class=\"wp-block-heading\">2. Random Vulnerability \u2014 Extracting private keys from transactions<\/h2>\n<p>Bitcoin exists as UTXOs\u2014the unspent transaction outputs. When sending funds, the wallet aggregates them to the desired amount and signs the transaction with a combination of the private key and a nonce.<\/p>\n<p>Due to a RNG flaw, the app can sign different operations with the same nonce. If attackers correlate and decrypt signatures of such transactions, they can derive private keys.<\/p>\n<p>This method is called <a href=\"https:\/\/allprivatekeys.com\/random-vulnerability\">Random Vulnerability<\/a>. Using it, hackers cracked more than two thousand wallets for a total of <a href=\"https:\/\/balasys.eu\/blogs\/bitcoin-account-hijacking-ecdsa-nonce-break\" target=\"_blank\" rel=\"noopener\" title=\"\">484 BTC<\/a>.<\/p>\n<p>According to a Kudelski Security study, the vulnerability also <a href=\"https:\/\/research.kudelskisecurity.com\/2023\/03\/06\/polynonce-a-tale-of-a-novel-ecdsa-attack-and-bitcoin-tears\/\">occurs<\/a> in Ethereum and EVM-compatible networks.<\/p>\n<p><strong>How to protect yourself:<\/strong> keep wallet applications updated, including Bitcoin Core and its equivalents for other blockchains.<\/p>\n<h2 class=\"wp-block-heading\">3. Weak Brainwallet \u2014 Generating keys from non-random data<\/h2>\n<p>A brainwallet is a method of creating a private key from a user-supplied phrase instead of a random number. It is easy to remember, and thus to \u201cstore in the head.\u201d<\/p>\n<p>Users often generate keys from single words, obvious combinations like 12341234, phone numbers, or quotes from films. Hackers exploit human predictability: they create keys from popular or leaked passwords and then drain the corresponding wallets. In doing so since 2009, criminals have <a href=\"https:\/\/privatekeys.pw\/brainwallet\/bitcoin\/1\">hacked<\/a> more than 19,000 Bitcoin wallets and stolen at least 4,000 BTC.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/xGmfbp1KTL_cZabSRc4pDMv-MkFjPrlEKMdtpjE54s_wvBV8Qg7Zm81RWJqrrsBElDG5NCm7LFOnw5-exu6yV31JCrXHCE-2lHuzRGrnf666JV_fODrFUtbSer5etqgaEAmhCqDfZbzTRoH41PG7dS0\" alt=\"How hackers break crypto wallets: six major vulnerabilities\"\/><figcaption class=\"wp-element-caption\">Examples of hacked wallets, whose owners generated keys from common phrases. Data: <a href=\"https:\/\/privatekeys.pw\/brainwallet\/bitcoin\/1\">Privatekeys<\/a>.<\/figcaption><\/figure>\n<p><strong>How to protect yourself:<\/strong> do not use Brainwallet; if you must, come up with a truly strong password using lowercase and uppercase letters, digits and special characters.<\/p>\n<h2 class=\"wp-block-heading\">4. Phishing \u2014 the user hands over the key<\/h2>\n<p>From a technical standpoint, the simplest way to gain access to a wallet is to persuade the owner to send you the key. Attackers impersonate exchange and wallet support staff, well-known figures, or security experts.<\/p>\n<p>For instance, in February 2023, hackers <a href=\"https:\/\/twitter.com\/Trezor\/status\/1630526933199998977\" target=\"_blank\" rel=\"noopener\" title=\"\">sent<\/a> users of Trezor fake emails from the company claiming a software wallet breach and asking them to provide the <a href=\"https:\/\/forklog.com\/en\/news\/opinion-long-seed-phrases-offer-little-practical-value\">seed phrase<\/a> for &#8220;verification.&#8221; <\/p>\n<p>In addition, attackers use on-chain analytics tools to target Bitcoin whales\u2014prominent individuals, project managers, and crypto-influencers. They write personalized letters and contact victims through private channels.<\/p>\n<p><strong>How to protect yourself:<\/strong> never send your private key or seed phrase to anyone.<\/p>\n<h2 class=\"wp-block-heading\">5. Keys in public view \u2014 monitoring GitHub<\/h2>\n<p>Developers of blockchain applications and smart contracts sometimes use personal wallets to test code. They may accidentally leave keys in files when publishing projects on hosting services.<\/p>\n<p>Hackers monitor updates and uploads to GitHub, Pastebin and other platforms for storing text notes. They look for strings that start with &#8220;5&#8221; (Bitcoin keys in WIF format), contain words from the seed phrase dictionary, or match the length of the private key.<\/p>\n<p><strong>How to protect yourself:<\/strong> do not store passwords on your computer in unencrypted files, and do not use your personal wallet for work purposes.<\/p>\n<h2 class=\"wp-block-heading\">6. Scam sites \u2014 generating compromised keys<\/h2>\n<p>Since 2019, hackers have used online wallet generators as a tool for theft. Such services may issue the same keys to different users or contain vulnerabilities that allow interception.<\/p>\n<p>Thus, in July 2023, user r\/jdmcnair <a href=\"https:\/\/forklog.com\/en\/news\/user-loses-bitcoin-after-using-a-key-generator\">stated<\/a> that $3,000 in Bitcoin was stolen from a paper wallet that he generated on an online service.<\/p>\n<p><strong>How to protect yourself<\/strong>: do not use websites\u2014generate addresses only on hardware devices or wallet apps.<\/p>\n<h2 class=\"wp-block-heading\">How to create a secure wallet<\/h2>\n<p>Private keys are safer than most passwords, but they can still be vulnerable due to application bugs and human factors.<\/p>\n<p>To avoid a breach, follow these steps for creating a secure Bitcoin wallet:<\/p>\n<ol class=\"wp-block-list\">\n<li>Do not use websites to generate addresses\u2014use hardware wallets and apps only.<\/li>\n<li>Do not generate keys from passphrases and passwords that you can remember: they are more vulnerable than randomly generated combinations.<\/li>\n<li>After generating a wallet, verify that the characters are indeed random. If more than half of the key&#8217;s characters are zeros, it is vulnerable to brute force.<\/li>\n<\/ol>\n<p>Additionally, it is important not to use personal cryptocurrency addresses for developing Web3 applications and to keep the wallet regularly updated.<\/p>\n<p>Remember: private keys should never be shared with third parties, no matter what they say.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Simple tips on how to protect your wallet that many people frequently forget.<\/p>\n","protected":false},"author":1,"featured_media":82884,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[1144],"tags":[1111,961,57],"class_list":["post-82883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-longreads","tag-cybersecurity","tag-hardware-wallets","tag-wallets"],"aioseo_notices":[],"amp_enabled":true,"views":"415","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=82883"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82883\/revisions"}],"predecessor-version":[{"id":82885,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82883\/revisions\/82885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/82884"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=82883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=82883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=82883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}