Side-Channel Attack Shows Vulnerabilities of Cryptocurrency Wallets

What’s in your crypto wallet? The simple answer should be fat stacks of Bitcoin or Ethereum and little more. But if you use a hardware cryptocurrency wallet, you may be carrying around a bit fat vulnerability, too.

At the 35C3 conference last year, [Thomas Roth], [Josh Datko], and [Dmitry Nedospasov] presented a side-channel attack on a hardware crypto wallet. The wallet in question is a Ledger Blue, a smartphone-sized device which seems to be discontinued by the manufacturer but is still available in the secondary market. The wallet sports a touch-screen interface for managing your crypto empire, and therein lies the weakness that these researchers exploited.

By using a HackRF SDR and a simple whip antenna, they found that the wallet radiated a distinctive and relatively strong signal at 169 MHz every time a virtual key was pressed to enter a PIN. Each burst started with a distinctive 11-bit data pattern; with the help of a logic analyzer, they determined that each packet contained the location of the key icon on the screen.

Next step: put together a training set. They rigged up a simple automatic button-masher using a servo and some 3D-printed parts, and captured signals from the SDR for 100 presses of each key. The raw data was massaged a bit to prepare it for TensorFlow, and the trained network proved accurate enough to give any hardware wallet user pause – especially since they captured the data from two meters away with relatively simple and concealable gear.

Every lock contains the information needed to defeat it, requiring only a motivated attacker with the right tools and knowledge. We’ve covered other side-channel attacks before; sadly, they’ll probably only get easier as technologies like SDR and machine learning rapidly advance.

[via RTL-SDR.com]

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