Cardano Founder Reacts to Satoshi Wallet Breach Speculations

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As a seasoned crypto investor with over a decade of experience in this dynamic digital landscape, I find myself constantly intrigued by the latest rumors and speculations that circulate within our community. The recent buzz surrounding the potential breach of Satoshi Nakamoto’s wallet has once again caught my attention, and after careful consideration of the facts, I remain skeptical.

Lately, there have been rumors swirling around a possible security incident involving digital wallets that some suspect are linked to the mysterious inventor of Bitcoin, Satoshi Nakamoto.

Charles Hoskinson, the creator behind Cardano, has shared his thoughts on these rumors, providing his unique insights.

As an analyst, I’ve come across some intriguing speculation stemming from an unverified report suggesting that researchers from a lab in Kentucky might have successfully deciphered eight out of twelve crucial phrases (mnemonics) safeguarding Satoshi Nakamoto’s Genesis Wallet. The reportedly discovered words are “Kentucky,” “chat,” “fried,” “Friday,” “Vivo,” “chicken,” “dollar” and “fifty.

Hoskinson dismissed the report as misinformation, stating that the author’s claims were unfounded since Satoshi Nakamoto did not employ specific keywords. He further mentioned that the BIP-39 standard for generating seed phrases and encryption keys in cryptocurrency wallets was introduced in 2013.

Fake news is fake

Satoshi didn’t even use keywords. BIP-39 came out in 2013. He generated his keys using the old wallet.dat keypool. I’m not sure one can even partially break keywords through brute force. How would you even verify that the partial keyset…

— Charles Hoskinson (@IOHK_Charles) November 29, 2024

In 2013, Marek Palatinus, Pavol Rusnak, Aaron Voisine, and Sean Bowe presented BIP39, a standardized approach for creating mnemonic phrases that aid in generating deterministic wallets. This development occurred four years following the launch of Bitcoin and two years after Satoshi Nakamoto’s departure.

On April 23, 2011, Satoshi communicated via email to a fellow Bitcoin developer, expressing that he was shifting focus onto different matters. He assured him that the future of Bitcoin was securely under capable management.

Hoskinson pointed out that Satoshi created his keys by using an old wallet.dat keypool, emphasizing the potential risk of a security breach. Moreover, he expressed doubt about whether it’s feasible to partially crack the keywords through brute force, questioning how one could confirm if the incomplete keyset corresponds to a specific wallet.

Satoshi among top 20 wealthiest individuals

Previously mentioned, the estimated worth of Satoshi Nakamoto’s Bitcoin holdings now exceeds a staggering $100 billion, placing the anonymous inventor among the globe’s 20 wealthiest individuals.

The estimated value of Patoshi wallets currently stands at approximately $108 billion, as reported by Timechainindex. These wallets, used in Bitcoin mining during the early years from 2009 to 2010, are speculated to belong to Satoshi Nakamoto and hold over 1.12 million Bitcoins. With Bitcoin’s recent surge, these assets now vie for positions on the Forbes Rich List.

Amid all these, Satoshi Nakamoto’s identity remains a mystery till present.

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2024-11-30 16:34