“Unhackable” Crypto Wallet May Have Been Hacked

CNN reported there may be a winner of the hack competition of John McAfee’s BitFi. The news service reports that a security research group called OverSoftNL released a tweet that it obtained root access into the “unhackable” crypto wallet. McAfee has not responded officially verifying the claim.

Sound of Silence

The original OverSoftNL tweet said they were “pleased to announce” they have root access into BitFi, among other details. They later tweeted that McAfee may not pay the $250,000. OverSoftNL said the lack of response from McAfee told them that the bounty rules may not have been followed as specified so they will never get paid. They called McAfee competition a “marketing scam.”

The hacking competition has come with its own sideshow of activity. There have been several security research experts who have consistently pointed to alleged chintziness of BitFi, calling it a “stripped down Android phone” and recommended not using the wallet. Other security researchers, according to the CNN report, allege BitFi has questionable apps in its wallet from Chinese search engine Baidu and Adups, both of which “call home” when BitFi is set up.

McAfee, who specializes in self-promotion and brash statements, vigorously denies the claims and floated the idea that OverSoftNL is working for McAfee competitors. The bounty’s original payout was $100,000, but the figure jumped in response to the criticism.

For Those Who Don’t Know…

A crypto wallet is kind of the industry’s versions of a bank. The wallet holds your cryptocurrency mush like a bank stores what is known as fiat money, or cash. These digital-based wallets track balances and allow the owner to send and receive digital currency using digital keys that enable a wallet to connect to a blockchain. BitFi is a wallet that you can hold in your hand like a cell phone, which is connected to blockchain infrastructure via a Wi-Fi connection. Crypto Compare is one outfit that allows users to research wallets as well as the value of cryptocurrencies.

In other wallet news, the cryptocurrency exchange Binance is in the process of acquiring small firm Trust Wallet. Technology at the “closely-held firm” allows it to hold 20,000 Ethereum-based coins and Binance will have control over the company’s 10-employee workforce. Trust Wallet technology, according to a report on Bloomberg.com, does not access user keys needed to access blockchain or go into the account of users. Instead, the wallet is autonomous in way and keys are kept there instead, not by the main company.

Binance is in the process of speaking with other acquisition targets and the value of the Trust Wallet deal was not released. However, Bloomberg reported the acquisition may not have been expensive because Trust Wallet does not have a substantial number of users. Binance is a Malta-based company that’s quickly rising on the cryptocurrency industry under the leadership of its CEO Changpeng Zhao, a veteran of the cryptocurrencies dating back to 2006. The company has its own cryptocurrency, the BNB token, and is well known among industry experts.

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