BitGo Users’ Private Keys at Risk due to Zero Proof Vulnerability

03/17/2023 13:09 • Digital Disruptors • 89 views

According to reports, the digital asset security platform Fireblocks has discovered a serious vulnerability in the Threshold Signature Scheme (TSS) wallet of BitGo, a cryptocurrency hosting company, which exposes its users’ private keys to the risk of being attacked by potential hackers. It is reported that BitGo immediately suspended the affected wallet service in December 2022 after learning of the vulnerability, which is known as the “BitGo Zero Proof Vulnerability”. The company subsequently released a patch in February 2023 to address the labeling issue and notified customers to update their systems by March 17. （The block）

Fireblocks reported a vulnerability in the BitGo TSS wallet, which has been fixed

Analysis based on this information:

BitGo, a cryptocurrency hosting company, has been hit by a major vulnerability in its Threshold Signature Scheme (TSS) wallet. According to Fireblocks, a digital asset security platform, the vulnerability – known as the “BitGo Zero Proof Vulnerability” – can expose users’ private keys to potential attacks by hackers. BitGo was reportedly quick to react, suspending the affected wallet service in December 2022, after being alerted to the issue. A patch was subsequently released in February 2023, which BitGo advised customers to install by March 17.

This news will come as a shock to BitGo’s customers, who rely on the company to provide secure storage for their digital assets. Private keys are the most sensitive part of a cryptocurrency wallet, as they are used to access and transfer funds. If a hacker is able to obtain a user’s private key, they would be able to steal their cryptocurrency. The TSS wallet is used by BitGo to store private keys in a distributed fashion, meaning that multiple parties need to agree on any transaction before it can take place. This is intended to make the wallet more secure, as it reduces the chance of a single party being able to access the private keys.

However, the Zero Proof Vulnerability puts this security at risk. Fireblocks discovered that it was possible to exploit a labeling issue to bypass the TSS protection and obtain access to users’ private keys. This would allow a hacker to steal any cryptocurrency stored in the wallet. BitGo acted quickly to address the issue and release a patch, but it is unclear how long the vulnerability had been present before it was discovered.

The incident highlights the ongoing security risks faced by cryptocurrency users. Despite the many benefits of blockchain technology, the decentralized and pseudonymous nature of cryptocurrencies makes them an attractive target for hackers. As the value of cryptocurrencies continues to rise, so too does the incentive for cybercriminals to seek out vulnerabilities and exploit them. Companies like BitGo need to remain vigilant and proactive in their efforts to protect users’ private keys, as the consequences of a successful attack could be devastating for their customers.

In conclusion, the Zero Proof Vulnerability in BitGo’s TSS wallet is a serious threat to the security of users’ private keys. The prompt action taken by BitGo to address the issue and release a patch is commendable, but it remains to be seen whether any customers were affected by the vulnerability before it was discovered. Cryptocurrency users need to be aware of the security risks involved in storing digital assets, and select their providers carefully to ensure that they are protected against potential attacks.

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BitGo Users’ Private Keys at Risk due to Zero Proof Vulnerability

Fireblocks reported a vulnerability in the BitGo TSS wallet, which has been fixed

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