Do Recovery Services for Crypto Wallets Really Work?
As crypto markets have surged in 2021, so has the number of users and crypto wallets. This, in turn, has led to an increase in recovery services.
It is inevitable that an increasing number of crypto asset investors, traders, and users is accompanied by an increase in those that lose access to their crypto wallets for some reason or other.
Wallet recovery services have exploded onto the scene, and a simple web search will reveal pages of them. The primary questions for users should be: are they trustworthy, and can they do the job? Maybe those that have lost access to their wallet will have nothing to lose by trying.
The surge in recovery services does bring up another valid question. This question regards the overall security of various crypto wallets if third-party companies can access them so easily.
Crypto Wallet Recovery Possible … But …
Companies, such as KeychainX for example, claim to be able to recover lost passwords or PINS and even be able to decrypt your blockchain.info 21-word mnemonic seed phrases. If a user has more than just the public key for a crypto wallet, there is a chance to unlock it, according to the firm.
The company claims to have recovered wallet keys for about 100 clients over the past six months alone. KeychainX has developed a custom smart algorithm based on hints in order to unlock wallets where users have forgotten the PIN.
It claims to have used such a system in late June when it helped an investor unlock a six-year-old wallet containing 10 million Dogecoins. A similar system of brute force has been used to recover mnemonic seed phrases. However, this is if the customer remembers some of the words.
KeychainX stated that there are still over 300 Ethereum presale wallets stuck when examining the genesis block. They range from modest tens of ETH up to over 10,000 ETH wallets that have never been claimed.
Achieving the Impossible?
The company is one of many that claim to achieve what many believe is impossible. However, the caveat is that it does require partial information to carry out the recovery.
Hardware wallets are also subject to losses and theft as thousands of Ledger customers painfully found out last year. The company itself offered no assistance or compensation to customers that lost funds due to its own server breaches and resultant wave of social engineering attacks.
The majority of crypto wallets are still safe providing that valuable information is kept private and secure. However, there is an increasing number of solutions for those that have lost access but have partial information.
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