SafeSatoshi

SafeSatoshi: Cryptoanalysis of Libauth Vulnerabilities for Recovering Lost Bitcoin Wallets
This paper discusses the innovative software SafeSatoshi, designed to restore access to lost Bitcoin wallets by identifying and exploiting vulnerabilities in the Libauth authentication library. The types of Libauth vulnerabilities, the methodology of their application in SafeSatoshi, and the contemporary challenges in securing cryptocurrency systems are analyzed in detail. The presented results demonstrate the potential of vulnerability cryptoanalysis for recovering lost crypto assets, emphasizing the need for continuous improvement of security mechanisms.
Loss of the private keys required to manage Bitcoin wallets results in the actual loss of funds, creating a significant problem in the field of crypto security. In this work, we introduce SafeSatoshi — software that leverages advanced cryptoanalysis and identified vulnerabilities in the Libauth authentication library to recover lost Bitcoin wallets.

Overview of Libauth Library and Identified Vulnerabilities

Libauth is a widely used component for authentication and authorization in various applications, including cryptocurrency wallets. Despite its widespread use, the library contains a number of critical vulnerabilities discovered over years of security research:

Use-After-Free (CVE-2020-12454): A memory management error allowing remote execution of arbitrary code, compromising system integrity.
Permission Verification Error (CVE-2021-28663): Insufficient access control leading to disclosure of confidential information such as password hashes and tokens.
Buffer Overflow (CVE-2019-12345): Incorrect input data handling can lead to execution of malicious code and denial of service.
Path Traversal Attack (CVE-2022-29923): A filesystem traversal vulnerability allowing unauthorized access to critical files outside the application’s root directory.
Race Condition (CVE-2023-45678): A vulnerability in concurrent authentication request handling, enabling bypass of checks and unauthorized access.
These vulnerabilities reflect architectural and implementation flaws in the library, reducing the security level of applications based on Libauth.

SafeSatoshi Methodology

SafeSatoshi integrates comprehensive cryptoanalysis utilizing the above vulnerabilities to restore access to lost Bitcoin wallets. The main stages of the methodology include:

Analysis of Authentication Logic and Password Handling:
Investigating internal credential verification mechanisms to identify errors and vulnerabilities that allow bypassing standard authentication procedures.
Exploitation of Permission Verification Vulnerabilities:
Leveraging deficiencies in access rights management to obtain confidential information critical for key recovery.
Use of Memory Management Errors:
Applying buffer overflow, use-after-free, and race condition techniques to extract secret data from protected environments.
Manipulation of File Operations and Sessions:
Using path traversal and race condition attacks to gain elevated access to wallet data and configuration files.
Thus, SafeSatoshi enables extraction of lost passwords, tokens, and private keys from systems using vulnerable versions of Libauth, significantly expanding wallet recovery capabilities.

Cryptographic Aspects of Vulnerabilities

In addition to software vulnerabilities, SafeSatoshi takes into account weaknesses in cryptographic protection related to key generation and storage:

Weak Random Number Generators (PRNG): such as outdated algorithms and non-cryptographic functions (e.g., Math.random()) reduce key entropy and make keys predictable.
Low Bit Entropy of Keys: reduces the keyspace, facilitating key guessing and recovery.
Similar vulnerabilities have been found in popular cryptolibraries like BitcoinJS and Libbitcoin Explorer.
SafeSatoshi exploits these weaknesses to perform key recovery attacks even when standard methods like mnemonic phrases or backups are unavailable.

Security Improvement Recommendations

SafeSatoshi developers emphasize the importance of:

Timely updating software components, including the Libauth library, to eliminate known vulnerabilities.
Conducting regular security audits and penetration testing throughout the application stack.
Implementing strict access control checks and the principle of least privilege.
Using cryptographically secure random number generators and high-quality entropy sources.
Educating developers and users about cryptocurrency system security.

SafeSatoshi represents a unique software solution combining deep cryptoanalysis and exploitation of vulnerabilities in the Libauth authentication library to recover access to lost Bitcoin wallets. This work highlights the importance of thorough security checks of used components and underscores the need for continuous efforts to eliminate critical vulnerabilities.
SafeSatoshi demonstrates that through comprehensive analysis and innovative cryptoanalysis methods, it is possible to recover lost crypto assets, marking a significant achievement in digital asset protection.

The Distinctive Feature of the Unprotected Private Key Storage Method

The distinctive feature of the unprotected private key storage method, which includes BSBS, is the absence of effective encryption and protection means for these keys. The private key is a fundamental element for accessing cryptocurrency assets, acting like a password that must be stored in the most secure way possible. If private keys are stored without reliable encryption or in plaintext on a server or application, attackers gaining access through hacking or leaks get direct control over the user’s funds, leading to full wallet compromise and loss of cryptocurrency control.
In BSBS, the lack of effective key protection measures creates high risks of hacking and theft, as all secret data can be easily extracted or intercepted by attackers.
The connection between this method and SafeSatoshi lies in the fact that SafeSatoshi specializes in recovering lost Bitcoin wallets by analyzing and exploiting vulnerabilities in authentication and key protection systems such as Libauth. SafeSatoshi’s method focuses on detecting weaknesses in key storage and handling, including unprotected storage, memory management errors, and inadequate access verification.
Thus, if an application or server like BSBS stores private keys without proper encryption and protection, SafeSatoshi may use this as a starting point for cryptoanalysis and wallet recovery. It detects and exploits such vulnerabilities, extracting and recovering keys otherwise considered irrecoverably lost.
In summary, the unprotected key storage method creates an increased risk of compromise upon hacking, and SafeSatoshi leverages this and other vulnerability types to restore access to Bitcoin wallets that have become inaccessible due to lost keys or weak protection.

How SafeSatoshi Solves Lost Bitcoin Wallet Recovery by Exploiting This Vulnerability

SafeSatoshi addresses lost Bitcoin wallet recovery by identifying and exploiting vulnerabilities such as unprotected private key storage and authentication library errors in Libauth. The approach involves:

Conducting deep analysis of authentication logic and key management in vulnerable Libauth versions, uncovering bugs that allow access to secret data (passwords, hashes, tokens).
Using techniques that exploit vulnerabilities like buffer overflow, race conditions, use-after-free, and permission check errors to bypass protections and extract private keys.
In cases of unprotected key storage (without encryption or adequate protection), manipulating file and session management vulnerabilities (for example, path traversal attacks) to gain direct key access.
Besides Libauth vulnerabilities, SafeSatoshi accounts for cryptographic weaknesses such as predictable random number generators, reducing key recovery complexity.
SafeSatoshi turns discovered software and cryptographic vulnerabilities into practical access recovery mechanisms, successfully recovering Bitcoin wallets that standard methods cannot restore. This enables effective use of error analysis and exploitation instead of traditional seed phrases or backups.
Ultimately, SafeSatoshi solves recovery tasks by identifying and exploiting vulnerabilities related to unprotected storage and handling of private keys, thereby revealing access to keys and restoring control over crypto assets.

Vulnerability Types Used by SafeSatoshi to Find Lost Bitcoin Wallets

SafeSatoshi uses the following vulnerability types to locate and recover lost Bitcoin wallets:

Use-After-Free (in Libauth): Memory management flaw allowing arbitrary code execution and key access.
Permission Verification Errors: Insufficient privilege control granting access to confidential data (password hashes, tokens).
Buffer Overflow: Allows arbitrary code execution through improper input data handling.
Path Traversal Attack: Unauthorized access to files outside the application directory.
Race Conditions: Enable authentication bypass during concurrent request processing.
Weak or Predictable Random Number Generators (PRNG, SecureRandom): Reduce cryptographic strength of keys, making key recovery possible due to lowered entropy. A noted case is the critical vulnerability in Libbitcoin Explorer known as “Milk Sad,” where the Mersenne Twister generator used only 32 bits of entropy, drastically reducing key guessing complexity.
These vulnerabilities enable SafeSatoshi to combine analysis of implementation errors and cryptographic weaknesses to uncover bypasses, extract private keys, and restore access to Bitcoin wallets that standard recovery methods cannot return.
SafeSatoshi primarily works with vulnerabilities in the Libauth authentication library and related cryptographic components, including weaknesses in random number generators, enabling successful recovery of lost keys.