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Massive Crypto Security Flaw: 120K Bitcoin Keys at Risk, OneKey Remains Secure

 

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120K Bitcoin Keys Exposed Highlights Vulnerabilities in Trust Wallet and Crypto Security

A recent cybersecurity study has brought to light a staggering vulnerability affecting the cryptocurrency ecosystem, revealing that approximately 120,000 Bitcoin private keys were exposed due to a flaw in a widely used Bitcoin library. The discovery has raised serious concerns about wallet security and the broader risks in crypto infrastructure.

The vulnerability originated from Libbitcoin Explorer (bx) version 3.x, a software library employed by multiple wallet providers to generate Bitcoin addresses. Researchers discovered that the library’s method of generating private keys followed a predictable pattern, enabling attackers—or even investigators—to reconstruct wallet keys. This flaw has prompted widespread scrutiny of wallets that relied on the compromised library, including some versions of Trust Wallet.


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How the Vulnerability Occurred

The flaw was traced back to the library’s random number generation algorithm. Libbitcoin Explorer used a Mersenne Twister-32 method seeded solely with system time. Because system time has a finite number of possible values—2³² in this case—it made the private key generation process predictable. Once the seed was identified, private keys could be derived within days.

This predictable randomization left affected addresses vulnerable to brute-force attacks, where computers can systematically test millions of combinations in a short span. Had malicious actors exploited this flaw before detection, the financial impact could have been catastrophic, potentially resulting in the loss of millions of dollars in Bitcoin.

Wallets Affected by the Flaw

The vulnerability primarily impacted several wallet platforms that used the Libbitcoin Explorer library:

  • Trust Wallet Extension versions 0.0.172 through 0.0.183

  • Trust Wallet Core versions up to 3.1.0 (excluding 3.1.1)

  • Any other wallets that incorporated Libbitcoin Explorer 3.x

Experts estimate that over 220,000 wallet addresses were generated through this flawed system, leaving a significant portion of private keys exposed and at risk.

Law Enforcement Utilized the Vulnerability

Interestingly, the exposure of 120,000 Bitcoin keys was not initially exploited by hackers but rather by U.S. law enforcement agencies. Authorities reportedly discovered the flaw and used it to access wallets associated with past investigations. At the time, the seized Bitcoin—approximately 120,000 BTC—was valued at roughly $3.7 billion in 2020. With Bitcoin’s subsequent rise in value, the holdings are now estimated at nearly $15 billion as of 2025, making it one of the largest recoveries in cryptocurrency history.

According to research from cybersecurity team Milk Sad, the predictable nature of the keys was directly tied to the flawed random number generation. Their report emphasized that even minor errors in cryptographic processes, such as using deterministic rather than truly random values, can lead to massive financial consequences.

OneKey Wallet: A Safer Alternative

Following the disclosure of the vulnerability, hardware wallet provider OneKey assured users that their devices remained unaffected. OneKey wallets utilize a Secure Element (SE) chip integrated with a True Random Number Generator (TRNG). This approach ensures that private keys are truly random, non-reproducible, and compliant with rigorous security standards, including EAL6+, NIST SP800-22, and FIPS-140-2.

Additionally, OneKey’s software wallets—including desktop, mobile, and browser versions—leverage secure random number generators native to contemporary operating systems, such as Android and iOS, further mitigating potential risks. The company recommended that users store long-term holdings exclusively in hardware wallets and avoid importing mnemonics from older, less secure wallets.

Lessons for Cryptocurrency Users

The 120,000 Bitcoin keys exposure serves as a cautionary tale for the crypto community. It underscores the importance of randomness in cryptographic systems, where predictable private keys can completely undermine security. Even small coding errors or oversights can have dramatic financial consequences.

Crypto investors are advised to carefully select wallets with a proven security track record, prioritize hardware wallets for long-term storage, and remain vigilant about software updates. In the rapidly expanding world of digital assets, trust, transparency, and proper cryptographic practices are essential to safeguarding value.

As cryptocurrency adoption continues to accelerate, this incident highlights the need for constant vigilance, rigorous audits, and secure development practices. Technical vulnerabilities in the underlying blockchain ecosystem can have far-reaching consequences, and as the stakes grow higher with the value of digital assets, the margin for error becomes ever smaller.

The lesson is clear: in the world of crypto, the integrity of private key generation is paramount, and even the smallest security oversight can cost billions. As the industry matures, developers and investors alike must ensure that technical rigor, secure randomization, and best practices remain at the forefront of blockchain and wallet design.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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