Kraken: KeepKey Hardware Wallet Has an Alarming Flaw

Crypto practitioners who depend on Keepkey hardware wallets to store their coins ought to take a pledge of not discussing it in public.


The warning appears on Kraken’s latest blog post wherein it discusses a serious flaw in all of the Keepkey hardware wallets. The US exchange’s security research wing claims that it has found a way to hack seeds from Keepkey wallets. In retrospective, a seed phrase is a string of random words that allows owners to recover their cryptocurrency wallets. That said, anybody with access to seeds could gain access to cryptocurrency funds stored on a wallet.

Kraken found that Keepkey devices have an issue related to their microcontrollers. The exchange noted that people with physical access to victims’ crypto wallets could use specialized hardware to read their encrypted seeds. For that, the attacker would also need to crack the wallets’ pin code through brute force.

The issue now resides in each one of the Keepkey wallets in circulation. The company cannot solve it until it decides to replace them all with patched devices.

“This,” wrote Kraken, “unfortunately means that it is difficult for the KeepKey team to do anything about this vulnerability without a hardware redesign.” Read More...

#KeepKey #Kraken

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