In the fast-evolving world of cryptocurrency, security is everything. But sometimes, the very tools designed to protect digital assets can become the weakest link—especially when hidden flaws lie buried in outdated software. This is the story of how two digital sleuths cracked an 11-year-old password to unlock a crypto wallet worth $3 million, exposing vulnerabilities that could still affect millions of users today.
The Lost Crypto Fortune
Back in 2013, a European man known only as “Michael” stored 43.6 BTC in a password-protected digital wallet. At the time, Bitcoin was worth just over $100 per coin—making his stash worth around $5,300. He used RoboForm, a popular password manager, to generate a 20-character password and saved it in a file encrypted with TrueCrypt. But due to file corruption, he lost access to that password—and with it, his cryptocurrency.
“I was really paranoid with my security,” Michael recalls, laughing. Ironically, his overcautious approach backfired: he didn’t store the password in RoboForm itself, fearing a hacker might compromise his system.
Fast forward a decade, and Bitcoin’s value had surged. Those forgotten coins were now worth millions. Desperate, Michael reached out to Joe Grand—a renowned hardware hacker and electrical engineer known in hacker circles as “Kingpin.” Two years earlier, Grand had successfully recovered $2 million in crypto from a locked Trezor wallet by reverse-engineering its hardware. But this case was different: Michael’s funds were locked in a software-based wallet, rendering Grand’s hardware expertise useless—at first.
A Flawed Foundation
Grand initially declined the request. Brute-forcing the password—automatically testing millions of combinations—was computationally unfeasible. He briefly considered whether RoboForm’s password generation algorithm had weaknesses. Most secure systems use cryptographically strong pseudo-random number generators (PRNGs), but flaws in older software can make passwords predictable.
Then Michael returned in June 2024 with renewed hope. This time, Grand agreed to help—partnering with Bruno, a fellow digital security expert based in Germany.
Their breakthrough came after months of reverse engineering older versions of RoboForm. They discovered a critical flaw: the password generator tied its output directly to the computer’s system clock. In versions released before 2015, RoboForm used the date and time as a seed for generating “random” passwords. That meant if you knew when a password was created—and the generation parameters—you could recreate it exactly.
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Narrowing the Window
The challenge? Michael couldn’t remember when he created the password.
The only clue: his wallet received its first Bitcoin transaction on April 14, 2013. Grand and Bruno assumed the password was generated around that time. Using known parameters—20 characters, including upper- and lowercase letters, numbers, and special characters—they simulated RoboForm’s behavior from March 1 to April 20, 2013. No match.
They extended the window to June 1, 2013. Still nothing.
Frustrated, Michael insisted his memory was correct—until they found two other passwords he’d generated in 2013 that didn’t include special characters. That changed everything.
Adjusting their model, they re-ran simulations excluding special characters. Finally, in November 2024, they cracked it: the password was generated on May 15, 2013, at 4:10:40 pm GMT.
“We ultimately got lucky,” Grand admitted. “If our parameters or time range were off, we’d still be guessing.”
The Hidden Risk for Millions
RoboForm, developed by US-based Siber Systems, has over 6 million users worldwide. The vulnerability existed in versions prior to 7.9.14, released on June 10, 2015. A changelog notes improvements to “increase randomness of generated passwords,” but offers no technical details.
Siber confirmed the fix but declined to explain how it was implemented. Simon Davis, a company spokesperson, stated that RoboForm 7 was discontinued in 2017.
This raises serious concerns: if users never changed passwords created before 2015, those credentials may still be vulnerable. And there’s no evidence Siber notified customers to update them.
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Why This Matters Beyond One Wallet
Joe Grand warns that without full transparency about how the flaw was fixed, even newer RoboForm versions could harbor risks. He remains skeptical: “I'm still not sure I would trust it without knowing how they actually improved the password generation.”
He also highlights user behavior: “Most people don’t change passwords unless forced.” In his own password manager (not RoboForm), 220 of 935 saved passwords date back to 2015 or earlier—and most are still in active use.
From $38K to $3 Million
After cracking the code, Grand and Bruno took a small percentage of the Bitcoin as compensation before handing over access. At the time—November 2024—Bitcoin traded at $38,000 per coin. Michael waited until it hit $62,000 and sold part of his holdings.
Today, he retains 30 BTC, valued at approximately **$3 million**. He’s holding out for $100,000 per Bitcoin.
Ironically, losing the password turned out to be financially beneficial. “That I lost the password was financially a good thing,” Michael says. Had he accessed the funds earlier, he likely would’ve sold at lower prices and missed the massive upside.
Frequently Asked Questions
Q: How did researchers crack a password after 11 years?
A: They exploited a flaw in older RoboForm versions that used system time to generate passwords. By simulating past dates and refining generation parameters, they recreated the original password.
Q: Is RoboForm still unsafe to use?
A: The known flaw was patched in 2015 (version 7.9.14), but without full technical disclosure, trust remains limited. Current versions may be secure—but users should assess risk carefully.
Q: Could this happen with other password managers?
A: Yes. Any tool using weak randomness or predictable seeds could be vulnerable. Always use reputable, updated software with proven cryptographic standards.
Q: Should I change old passwords generated before 2015?
A: Absolutely—especially for high-value accounts like crypto wallets or financial services. Assume any password made with pre-2015 RoboForm is potentially compromised.
Q: Can hackers use this method on other users?
A: In theory, yes—if they know the approximate generation time and parameters. The attack requires significant technical skill but is feasible for targeted threats.
Q: What’s the best way to securely store cryptocurrency?
A: Use modern hardware wallets with strong PINs, enable multi-signature setups where possible, and avoid relying solely on software-based solutions.
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This case underscores a vital lesson: digital security is only as strong as its weakest component—and sometimes, that weakness lies not in what you did wrong, but in outdated tools you trusted long ago. As crypto values continue to rise, so too does the incentive for sophisticated recovery efforts—and attacks. Staying informed isn’t just smart; it’s essential.