Seattle Startup Offers to Crack Bitcoin Thumb Drive for Former Ripple CTO
In September, a Seattle startup lab approached former Ripple CTO Stefan Thomas with an offer to crack the IronKey S200 thumb drive that contains his 7002 Bitcoins. However, Thomas declined the offer and stated that he had already hired another team to work on the problem.
Fmr. Ripple CTO Gives Another Team a Chance
Thomas wants to give the new team a fair chance at retrieving his Bitcoins before considering other options. He mentioned that if they are unable to find a solution, they may subcontract the Seattle firm in the future.
The cybersecurity firm that successfully cracked the IronKey S200 has not disclosed their method. However, they were able to generate three correct passphrase terms for the memory stick after approximately 200 trillion tries using a high-performance computer. This achievement highlights the potential disruption that quantum computers could pose to cryptocurrencies like Bitcoin and Ripple.
The Risks of Self-Banking with Bitcoin
Thomas, drawing from his experience with Ripple Labs and his personal experience of locking up 7002 Bitcoin since 2011, questions the “be your own bank” narrative associated with Bitcoin. He compares it to making your own shoes and emphasizes the role of banks in handling complex financial tasks.
Ripple is a blockchain-based platform and currency exchange service used by financial institutions globally, while Bitcoin is the pioneer of hash-based blockchains for fast payment settlements on a decentralized network.
At the time of writing, Ripple was trading at $0.55, while Bitcoin was valued at $34,000.
Hot Take: Former Ripple CTO’s Dilemma Highlights Security Challenges in Cryptocurrency Storage
The story of former Ripple CTO Stefan Thomas and his locked Bitcoin thumb drive sheds light on the security challenges associated with cryptocurrency storage. While the Seattle startup lab offered to crack the drive, Thomas opted to give another team a chance. This incident underscores the potential threat that quantum computers could pose to cryptocurrencies, as demonstrated by the cybersecurity firm’s success in generating correct passphrase terms through an extensive trial-and-error process. It also raises questions about the concept of self-banking with cryptocurrencies like Bitcoin. Overall, this case serves as a cautionary tale for crypto holders to prioritize secure storage solutions and be mindful of the risks involved.
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