How a Hacker Helped Recover $3 Million in Bitcoin

Michael had stored his 43.6 BTC in a password-protected digital wallet, using RoboForm to generate a 20-character password and encrypting it with TrueCrypt. Unfortunately, the encrypted file got corrupted, and Michael lost access to his fortune.

Joe Grand, a renowned hardware hacker, initially turned Michael down. Grand had previously helped another individual recover $2 million in cryptocurrency by cracking a Trezor wallet. However, Michael’s case was different as it involved a software-based wallet, making Grand’s hardware expertise less applicable.

After reconsidering, Grand teamed up with his friend Bruno, a fellow hacker based in Germany. They discovered a flaw in the older version of RoboForm Michael used. This version tied password generation to the computer’s date and time, making it possible to predict passwords if the generation date and parameters were known.

Despite not recalling the exact date he created the password, Michael knew the general timeframe. Grand and Bruno set RoboForm to generate passwords from March to June 2013. After multiple attempts and adjustments, they finally cracked the code: a 20-character password generated on May 15, 2013, without special characters.

Michael regained access to his Bitcoin, which was then worth $38,000 per coin. He waited for the value to rise and now holds 30 BTC, currently worth $3 million. Reflecting on his experience, Michael considers losing the password a stroke of luck, as it led to greater financial gain.