
Hold Your Own @arisebitcoin
Gold Coast, Queensland
Joined November 2022
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A Bitcoin passphrase can be easy for an attacker to guess and a nightmare for its owner to recover. That is a terrible trade. I filmed my approach: physical dice, the @EFF wordlist, fixed formatting, @SeedSigner, @SparrowWallet, @MicroSeed_io and a proper recovery drill.
commodity general purpose hardware is looking more attractive by the day
INVESTIGATION UPDATE 2
In our last update, we said we would share how many people had personal information exposed once we could confirm it. We can now share those numbers.
Across our old WooCommerce store and our current Shopify store, records containing approximately 5,600 mailing addresses and 5,200 phone numbers, along with names and email addresses, were held in systems the attackers were able to reach. We cannot say for certain whether the attackers accessed all of these records, so we are treating all of them as potentially exposed. These records are a subset of our total customers.
Why the data was still there:
In our last update, we explained that copies of orders remained in old database tables after past migrations. We have since found that the 60-day redaction also did not cover every type of order, and that some customer details were stored in other parts of the store, such as abandoned carts and contact forms, that redaction never reached.
Addresses not in our records:
More than 5,000 of the email addresses that received phishing emails do not appear in our WooCommerce or Shopify customer records. Some match our support and hiring inboxes. Together with reports of details that were never shared with us, this makes us confident the attackers also used data from outside Foundation. We are still tracing where these addresses came from.
What we are doing:
Out of an abundance of caution, we are rotating all keys and secrets across our systems, including those we have no evidence were accessed.We are keeping a single copy of the legacy WooCommerce data offline as evidence for the investigation. Once the investigation is complete, that data will be permanently deleted.
We have found no evidence that this incident compromised Passport devices or the private keys they hold.
Never enter your recovery phrase into a website or share it with anyone, including someone claiming to be Foundation.
We will continue sharing confirmed findings and publish our full report when the investigation is complete.
4. from what I have seen first hand, they retained customer data prior to May this year despite what they publicly stated.
Are we done with proprietary hardware wallets yet?
We owe you an apology.
On October 20, we detected unauthorized access to our official website. After verifying API activity with Shopify, we confirmed on October 23 that a third party obtained customer shipping information. You trusted us with those details, and we're sorry we didn't keep them safe.
Exposed: names, contact details, shipping addresses, and order details (items and prices).
Not exposed: payment card or bank details, recovery phrases, private keys, or wallet passwords.
We've blocked access, fixed the vulnerability, opened an investigation, and are emailing affected customers.
Scammers may pose as Keystone by phone, text, email, or mail, offering refunds, replacement devices, or "fixes" for your order or address. None of it is from us.
NEVER share your recovery phrase or private keys, and NEVER enter your recovery phrase into a device you didn't order. We will never ask for them. Don't click links in unexpected messages. Type keyst.one yourself.
A detailed report is coming soon.
Until then, trust only our official channels. If anything feels off, email [email protected]. We'd rather hear from you than have you take a chance.
Again, we're truly sorry to everyone affected.
There's going to be some explaining to do here.
Replying to @FoundationHQ
In addition to self-hosting, we automatically purge customer data from our servers 60 days after your order ships.
Data tied to any #bitcoin company is sensitive. We love our customers but always make sure you and your data are forgotten!
Not a good place to be in at all. Foundation cannot rule out that their entire customer database has been leaked.
Replying to @TurnerAnalytics
No I cannot.
What we are trying to figure out is if our entire customer list was compromised or just the emails from our support inbox. Or some kind of partial compromise in between.
We have evidence that folks on our mailing lists did not receive these emails.
This is looking very bad. I have already received confirmation of clients receiving completely authentic appearing emails purportedly from Foundation's CEO requesting they click a link. The email contains the customer name, home address, contact number and method of delivery of the device.
ANNOUNCEMENT: SPAM EMAILS HAVE BEEN SENT THAT APPEAR TO HAVE COME FROM OFFICIAL FOUNDATION DOMAINS.
We have traced this back to one or more compromised API keys on Cloudflare, and have already revoked all API keys.
The malicious domain in the spam email has been taken down.
Funds stored on Passport are safe and Passport hardware is not compromised.
We are working nonstop to discover exactly what happened and will put out a report ASAP.
the good news keeps coming
Paralysed. That's how Ray White's chief economist describes Australia's housing market. Values down 7.6% since April across the big five capitals. Sydney down 9.8% (Cotality). SQM Research says a 20% fall in Sydney can't be ruled out. Fewer than half of homes are selling at auction. The worst is yet to come.
Another day…
ANNOUNCEMENT: SPAM EMAILS HAVE BEEN SENT THAT APPEAR TO HAVE COME FROM OFFICIAL FOUNDATION DOMAINS.
We have traced this back to one or more compromised API keys on Cloudflare, and have already revoked all API keys.
The malicious domain in the spam email has been taken down.
Funds stored on Passport are safe and Passport hardware is not compromised.
We are working nonstop to discover exactly what happened and will put out a report ASAP.
Security comes from the randomness. Reliability comes from the rules.
I've developed six simple rules for constructing Bitcoin passphrases using physical dice and the EFF wordlist.
No clever substitutions. No special-character gymnastics. No guessing what you did 20 years ago.
A secret that's extraordinarily difficult to guess, but straightforward to back up and reproduce accurately.
Here's how I do it. 👇
The complete 12-minute instructional covers everything from generating the passphrase to verifying the wallet with SeedSigner and Sparrow, creating durable backups, and performing a proper recovery drill.
Watch it here:
youtu.be/n1s8MK1lyEw
This is brilliant work and predates what I did, I had no idea it was out there until now. Please give it a read, and never stop learning.
Te dejo estos enlaces por si te sirven complementar.
SeedSigner: activar su Passphrase
xitter.cf/MatheyBTC/status/21049…
🎲Cómo crear tu passphrase BIP-39 con dados, explicado para que cualquiera lo entienda.
xitter.cf/MatheyBTC/status/20853…
also a huge thanks to @hansmade3d for the pre-assembled SeedSigner Plus model shown, which is absolutely exemplary.
Side Note:
This image was taken on the iPhone 18.
it's incredible how fantastic camera technology has become. Use these amazing powers to help you rather than enslave your mind.
Anyone can take something tiny and make it easily readable, like this coin-sized MicroSeed.
no matter what happens, it's only going to become harder from here to buy and withdraw Bitcoin from the mainstream on-ramps. Act with pace and diligence.
Our great responsibility with passphrases is to avoid making a brittle setup that we're unable to recover.
Choose wisely, and learn how to protect yourself with Bitcoin.
The approach shown is one technique we can implement. As the stakes change, so too will the security trade-offs.
TIL that the EFF created a process for generating passphrases w/ dice (eff.org/dice).
With BIP39 passphrases I always say "with great power comes great responsibility" and I tend to prefer multisig over passphrases, but this is a reasonable approach & well presented.
The appreciation is all mine. Thank you.
I love my MicroSeed. It's a remarkably simple and practical way to make durable (and obscurable!) backups of our important words.
Anyone serious about Bitcoin self-custody must consider incorporating these into a properly documented and tested recovery plan.














