Hardware wallets at risk: the Alarming results of a new study

At the conference 35C3 Refreshing Memories, a group of researchers demonstrated the procedure of hacking One best wallet, the Ledger Nano’s and Ledger’s Blue, and on 27 December a video posted on the web.

Team hacking project Wallet.fail consists of designer hardware and security specialist Dmitry Nedospasov, developer Thomas Roth and a former officer of the submarine’s Josh Datko.

During the conference, researchers announced that they managed to extract a private key from a hardware wallet best wallet you One after the reset and overwrite existing data or custom firmware. However, it is noted that this hacking is only possible if the user didn’t set a passphrase.

Moreover, the hacker group was able to install custom firmware and a leading product on the market of hardware wallets, Ledger Nano S. And although the team only played friendly snake on the purse, one of the team members said.

“We can send a malicious transaction ST31 [security chip], and even self-confirming them [through]. This method also allows you to display totally different data transactions are not valid transaction.”

In addition, the team spoke about the vulnerability in the Ledger of Blue — the most expensive hardware wallet with a color touch screen. According to the representative of the hacker group, the signals are transmitted to the device screen for an unusually long cable on the motherboard that allows you to capture these signals in the form of radio waves. When you connect your device via USB cable the signal becomes so strong that it can catch at a distance of several meters. Cloud-based artificial intelligence allowed the team to capture of the leaked signal input PIN.

On Cointelegraph also recalled how in August the young hacker managed to hack BitFi hardware wallet that John McAfee touts as “the most secure and uncrackable wallet”. In this case the manufacturer does not recognize the hacking device, since coins in fact were not reported.

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Swiss financial regulator: a risk Factor for the cryptocurrency investment is 800%

Management to oversee the operations of the financial market Switzerland (FINMA) informally signaled that the risk ratio for cryptocurrency investments should amount to 800%. The Agency announced this figure in a letter dated 15 October in response to the Association request EXPERTsuisse, consisting of experts in the field of tax and audit activities.

In his letter to FINMA also said that the relevant legal provisions are not yet valid, therefore, banks and other stakeholders are often required to clarify this issue.

“FINMA recently received many inquiries from banks and securities dealers, which owns positions in cryptocurrency assets, and subject to requirements on capital adequacy, risk allocation and legal regulations on the calculation of ratios short-term liquidity” —quoted by Swissinfo representatives of FINMA.

In Switzerland, for several years there has been a formal integration of cryptocurrency products and banking sector, this European country is trying to create a legal environment that can support the development and operation of new financial instruments. At the same time, until the international Basel Committee on banking supervision develops all acts and laws necessary to regulate this area, FINMA can only give approximate figures.

However, the final decision may be announced at the end of November, when is the next meeting of the Basel Committee. Therefore:

“All scriptactive must assign an overall risk ratio of 800% to cover market and credit risks, regardless of where hold positions in the banking or trading assets,” — said in a letter to FINMA.

According to several sources, comment on the situation, 800% is a big figure, but it is within the allowable range. For example, the startup SEBA, which in September drew 103 million dollars to create cryptocurrency Bank of Switzerland, said:

“This recommendation will have limited impact on its business model. Nice to see that the banks no longer look away from the increased number of clients requiring services associated with cryptocurrencies, and ask for advice and do your own contribution,” said a spokesman for lobby group Bitcoin Association Switzerland.

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