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The Bitcoin Brain Drain: Examining the Use and Abuse of Bitcoin Brain Wallets

  • Marie Vasek
  • Joseph Bonneau
  • Ryan Castellucci
  • Cameron Keith
  • Tyler Moore
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9603)

Abstract

In the cryptocurrency Bitcoin, users can deterministically derive the private keys used for transmitting money from a password. Such “brain wallets” are appealing because they free users from storing their private keys on untrusted computers. Unfortunately, they also enable attackers to conduct unlimited offline password guessing. In this paper, we report on the first large-scale measurement of the use of brain wallets in Bitcoin. Using a wide range of word lists, we evaluated around 300 billion passwords. Surprisingly, after excluding activities by researchers, we identified just 884 brain wallets worth around $100K in use from September 2011 to August 2015. We find that all but 21 wallets were drained, usually within 24 h but often within minutes. We find that around a dozen “drainers” are competing to liquidate brain wallets as soon as they are funded. We find no evidence that users of brain wallets loaded with more bitcoin select stronger passwords, but we do find that brain wallets with weaker passwords are cracked more quickly.

Keywords

Bitcoin Brain wallets Passwords Cybercrime measurement 

Notes

Acknowledgements

We thank the anonymous reviewers and paper shepherd Sarah Meiklejohn for their helpful feedback. Some authors are funded by the Department of Homeland Security (DHS) Science and Technology Directorate, Cyber Security Division (DHSS&T/CSD) Broad Agency Announcement 11.02, the Government of Australia and SPAWAR Systems Center Pacific via contract number N66001-13-C-0131. Support from the Oak Ridge Associated Universities Ralph Powe Junior Faculty Enhancement Award is also gratefully acknowledged. This paper represents the position of the authors and not that of the aforementioned agencies.

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Copyright information

© International Financial Cryptography Association 2017

Authors and Affiliations

  • Marie Vasek
    • 1
  • Joseph Bonneau
    • 2
  • Ryan Castellucci
    • 3
  • Cameron Keith
    • 4
  • Tyler Moore
    • 1
  1. 1.Tandy School of Computer ScienceThe University of TulsaTulsaUSA
  2. 2.Applied Crypto GroupStanford UniversityStanfordUSA
  3. 3.White OpsNew YorkUSA
  4. 4.Computer Science and Engineering DepartmentSouthern Methodist UniversityDallasUSA

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