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Report Links 120,000 BTC Transfers to Flawed Lubian.com Wallets

US law enforcement obtained private keys for 120,000 Bitcoin, valued at $15 billion, due to a flaw in the pseudo-random number generator used by compromised wallets.

BTC

Summary

Cobo co-founder Shen Yu disclosed that U.S. law enforcement has acquired the private keys for 120,000 Bitcoin, valued around $15 billion, which were mysteriously transferred in 2020. The keys were obtained due to a flaw in the pseudo-random number generator used by affected wallets, which made private keys predictable. This vulnerability affected over 220,000 addresses, and some users continue sending funds to these compromised addresses, indicating ongoing risk.

Terms & Concepts
  • Pseudo-random number generator (PRNG): A software or hardware system that produces sequences of numbers approximating true randomness; weaknesses can compromise cryptographic security.
  • Private key: A secret cryptographic key used to sign transactions and access cryptocurrency holdings; revealing it allows full control over the associated assets.
  • Mining pool: A collective of cryptocurrency miners who share processing power and split rewards proportionally to contributed work.