this post was submitted on 01 Oct 2024
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According to the article ‘the Australian Federal Police (AFP) will allege that an analytics specialist from the AFP's Criminal Assets Confiscation Taskforce deciphered Mr Jung's cryptocurrency account's "seed phrase".’

The word ‘decipher’ is doing a lot of heavy lifting. I’m wondering if they socially engineered or just found it written somewhere in the house?

Anyway, curious as to how they did it.

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[–] [email protected] 10 points 1 month ago

The word ‘decipher’ is doing a lot of heavy lifting. I’m wondering if they socially engineered or just found it written somewhere in the house?

You can plausibly brute force up to 4, maybe 5 words of a seed phrase. It takes longer than a normal password because every seed phrase is technically valid, so the only way to know if your brute force is successful is to generate thousands of addresses at each of the different derivation paths you may expect funds to exist at.

The same seed phrase is used for Bitcoin, Ethereum, Monero, etc, but each currency uses the seed phrase to generate addresses in a slightly different standard. Additionally, each wallet uses a slightly different variation of that. Within each wallet is a notion of accounts, and within each account you could have dozens of addresses. You need to generate each of those addresses, and scan each cryptocurrencies blockchain to see if those addresses have ever been used.

Realistically one of three things happened: his seed phrase was written down and they found it, it was password protected or on a drive with weak AES encryption and they cracked THAT instead, or finally, he used a hardware wallet and they exploited a firmware vulnerability to lift the PIN and transfer out funds and/or read the seed from the device