Crypto Startup Bankrupt After Losing Password to $38.9M Crypto Wallet

Re:Crypto Startup Bankrupt After Losing Password to $38.9M C... by MaxwellKahn on Saturday August 26, 2023 @12:39AM (#37269988)

Even with multisig, each individual key holder has to manage their device, and the steel backup for that device. And there exists possibility of collusion between n of m of the multi sig holders against the other holders. Seems like it would still keep me up at night (though with SVB, standard bank accounts are starting to look shaky too).

Having not worked for a crypto company, curious what the standard best practices are for securing the "keys to the kingdom" (literally).

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Re:Crypto Startup Bankrupt After Losing Password to $38.9M C... by csomar on Saturday August 26, 2023 @04:22AM (#37270801)

There is no collusion, that’s the point of multi-sig, it’s akin to voting powers.

You can use multisig yourself too: ie you can use a key you remember, or the one in your safe. Along with a key in your phone. So two out of three. If someone gets the key in your safe, he can’t access your coins (he’ll need your phone too).

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Re:Crypto Startup Bankrupt After Losing Password to $38.9M C... by DannyBee on Saturday August 26, 2023 @07:19AM (#37271744)

There is collusion, of exactly the form described. Just because the collusion happens through voting doesn't make it not collusion.

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Re:Crypto Startup Bankrupt After Losing Password to $38.9M C... by dustymcp on Saturday August 26, 2023 @11:42AM (#37273841)

even the laser etcher is a problem :)

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Re:Crypto Startup Bankrupt After Losing Password to $38.9M C... by MaxwellKahn on Saturday August 26, 2023 @04:52PM (#37276802)

I was super paranoid, and bought one of these metal stamping tools(https://www.amazon.com/gp/product/B07ZFB5J15), and made my condo neighbors angry for one evening :) but hey, completely airgapped!

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