Claude Helps Recover Locked $400K Bitcoin Wallet After 11 Years (tomshardware.com) 42
A Bitcoin holder reportedly recovered 5 BTC worth nearly $400,000 with the help of Anthropic's Claude. According to X user cprkrn, they changed their wallet password while "stoned" and forgot it, unable to regain access for more than 11 years. Tom's Hardware reports:
After finding a mnemonic that actually turned out to be their old password a few weeks ago, the user dumped their entire college computer files in Claude in a last-gasp effort. The bot uncovered an old backup wallet file that it successfully decrypted, while also uncovering a bug in the password configuration that was preventing recovery up to that point.
[...] It seems that the user already had some candidate passwords and multiple wallets stored on their PC. They'd been trying to brute-force their way into the locked file with btcrecover, an open-source Bitcoin wallet recovery tool, but to no success. Their luck changed for the better when they found an old mnemonic seed phrase written in an old college notebook. The HD addresses recovered by the seed phrase matched those of a specific file on their computer, confirming that it was the wallet that held the 5 BTC, but it remained encrypted.
Out of frustration, cprkrn then dumped their whole college computer into Claude. This was when the AI discovered an older backup file of the wallet from December 2019 hidden in cprkrn's data. Claude also discovered an issue where the shared key and passwords that btcrecover was trying weren't combined properly. With the bug ironed out and an older wallet predating the password change, Claude successfully ran btcrecover and was able to decrypt the private keys, allowing cprkrn to transfer the five "lost" BTC to their current wallet.
[...] It seems that the user already had some candidate passwords and multiple wallets stored on their PC. They'd been trying to brute-force their way into the locked file with btcrecover, an open-source Bitcoin wallet recovery tool, but to no success. Their luck changed for the better when they found an old mnemonic seed phrase written in an old college notebook. The HD addresses recovered by the seed phrase matched those of a specific file on their computer, confirming that it was the wallet that held the 5 BTC, but it remained encrypted.
Out of frustration, cprkrn then dumped their whole college computer into Claude. This was when the AI discovered an older backup file of the wallet from December 2019 hidden in cprkrn's data. Claude also discovered an issue where the shared key and passwords that btcrecover was trying weren't combined properly. With the bug ironed out and an older wallet predating the password change, Claude successfully ran btcrecover and was able to decrypt the private keys, allowing cprkrn to transfer the five "lost" BTC to their current wallet.
doxxed self for cash (Score:2)
> dumped their whole college computer into Claude
Ouch. Lucky.
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but can Claude dig up the dump to recover bitcoins?
Nope. But digging through a massive pile of rubbish in search of money seems like a rather apt metaphor for the job market after AI gets through with it.
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I can totally see hordes of people climbing into the dump where that one guy's harddrive ended up.
I could even see people forming cooperative groups and dividing the area up into zones or something to find that drive.
And, stuff like this happening is why you keep multiple copies of something like this... cloud, local, USB thumbdrive, maybe even a copy on your cellphone... it's really highly doubtful that you'll lose all four things at once (and have a couple printouts of the mnemonic stashed someplace secur
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The moral of the story is... (Score:4, Informative)
a) Don't be a dumbass
b) Keep multiple copies of your password and critical files
c) SEE A
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Most people struggle with a). The Internet just makes that more obvious.
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Anonymous Twitter Stories (Score:5, Insightful)
It's not that it isn't true and it's nice he used Claude to do it . . . but . . . best I can tell this is just a total non-story.
All he really did, was find a backup of a file with the passphrase he knew. Then despite knowing the passphrase, he couldn't get it to open with some software he tried. And it looks like Claude didn't "find a bug" in that software, it just showed him how to use it. He was entering the passphrase in the wrong format. And like users will do with all software for all time, he called that a bug, and someone else repeated it.
It is good he used Claude to do this but it . . . didn't really do anything. I mean the article compares it to researchers spending months cracking a key. It's not even sort of the same thing.
Re:Anonymous Twitter Stories (Score:4, Insightful)
Does "the end user is an imbecile" count as a bug?
PEBKAC - Problem Exists Between Keyboard And Chair
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And it looks like Claude didn't "find a bug" in that software, it just showed him how to use it.
Does "the end user is an imbecile" count as a bug?
That insult is truly Dogbert-worthy - good job!
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Claude also discovered an issue where the shared key and passwords that btcrecover was trying weren't combined properly
Sounds like a bug to me.
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*sigh* - The recovery script didn't combine them properly, not the user. That's the definition of a bug.
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You basing this off the tweet?
Because... in the tweet it looks an awful lot like claude just reported how the function call expected the username and password to be formatted, and then ran the command the user couldn't work out themselves.
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I actually googled the project repo and decided it tracks.
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Indeed. But LLMs must be hyped so that some assholes can get even richer, hence story. Obviously, this is a) an irrelevant even b) just "better search" and c) this person did not get competent help to do things before.
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Thank you. That is how I read it also.
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the user dumped their entire college computer files in Claude in a last-gasp effort
That's what AI is good at, and what the user couldn't do themselves. Find the right signal buried in a massive pile of noise.
Good, now he can pay ... (Score:1)
... down his student debt.
Re:Good, now he can pay ... (Score:4, Insightful)
A least part of it.
Great (Score:3, Interesting)
Now if it could help me find the flash drive with $125 in 2012 bitcoin that sat on my truck's dashboard for a couple years before I lost it, that'd be great.
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If you can find the truck (if you don't have it), tear apart the defrost channels in the dashboard... 95% sure it's in there, along with those sunglasses you can't find.
Re: "they" (Score:2)
Yeah. It's bloody exhausting reading articles with the singular they.
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Yeah. It's bloody exhausting reading articles with the singular they.
According to the Oxford English Dictionary, [oed.com] it appears to have been exhausting people like you for quite a long time.
Re: "they" (Score:2)
The core problem is that some people assume it's okay to use the singular they in relation to anyone without asking. It isn't. If you want me to respect your pronouns, respect mine, too. Also, if you're an editor - do your f...ing job and find out the preferred pronoun of the person you are talking about.
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If you don't like english, there are many others to choose from. But the singular they has been with us since english was still laden with thees and thous with the oldest examples going back to the 1300s so I'm afraid the ancestor to which one should direct complaints died long ago. Probably aged 30 of some sort of medieval plague.
A tool to search in files (Score:3)
I need to try this on MY $400K Bitcoin wallet! (Score:2)
Now, where exactly did I *leave* that wallet? It's got to be somewhere around here! If I were stoned, what would I have done with it? Well, I mean, first I would have had to get stoned for that to happen. But let's not ruin the plot. Maybe Claude can help me figure all this out. Or maybe it can help me identify a long-lost relative who actually *did* get stoned and *did* leave a Bitcoin wallet somewhere lying around. The possibilities are endless!
Do you declare unaccessible bitcoins to IRS (Score:2)
Wonder how the IRS treats something like this. They were worthless files on a backup disk for all these years until Claude unlocked them and now they are worth something. So while he always had them, no reasonable person would ever claim you should have to file a 709 form over them.
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Gemini tells me that as long as the guy doesn't spend any of the bitcoins since this was a transfer only at this time, there's nothing to report to the IRS. He didn't buy any bitcoins or sell any bitcoins. wallet transfers are not counted by the IRS as a transaction. No past taxes or back reporting is necessary. When he does finally sell these bitcoins, he'll have to pay capital gains on 100% of their current value since his starting value ("purchase" if you will) was zero presumably. He'll want to ma
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It's like those guys who find a Civil War chest with a hundred gold coins in it and call the FBI.
Clout is far too expensive.
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Too lazy to actually try... (Score:2)
So he waited until he could delegate the task to an LLM, instead of doing ANY work on his own from the look of things.
That's an amazing degree of laziness.
misleading sensationalism article bait headline (Score:1)