It’s official – security around Bitfi’s unhackable cryptocurrency wallet leaks like a sieve, so much so the company has dropped the claim.
Hackers took on the challenge laid down by the company and almost continuously broke into the online wallet as soon as the company announced the secure technology a few weeks ago.
Backed by cryptocurrency guru and security software mastermind John McAfee, Bitfi offered a $250,000 bounty to anyone who could wreck their protected wallet.
Now, the reward program has bitten the dust, according to a statement from the company, but if the $250,000 has been paid out remains unclear.
“Bitfi’s bounty has been discontinued,” said the statement.
Bitfi hiring security expert
“Bitfi has the highest commitment to security and when it comes to storing financial assets nothing could be more critical.
“It is well-known Bitfi was advertised as the world’s first and only unhackable storage for digital assets and we guarantee your money is safe for life.
“This is an extraordinary claim and, of course, it is sometimes received with a lot of scepticism. There have been a lot of claims by various people that nothing is unhackable and this message has been perpetuated for quite some time.
“We strongly believe in the value of a bounty in an effort to resolve any possible concerns about the security of the Bitfi wallet.”
Now, the company is to sponsor another bounty program with the details to be revealed soon. Bitfi also intends to hire an ‘experienced’ security manager to address the vulnerabilities.
15-year-old breaks into wallet
Several security experts hacked the wallet, leaving the signature ‘THCMKACGASSCO’ behind. One was reportedly a 15-year-old developer.
Bitfi has also disclosed that the exploit opened a security flaw that left data unexpectedly stored in the wallet. The hackers suggest the wallet should be recalled and revamped with extra security.
The flaw allowed hackers to extract information to unlock users’ wallets with a cold boot attack.
“The basic architecture and hardware is inherently insecure, and they will have to rebuild from scratch,” commented one expert, David Wachtfogel, on Twitter.
The company has promised to act and expects to release a further statement within a few days.
McAfee is the company’s executive chairman.