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How We Recovered $300,000 in Bitcoin from an Encrypted Zip File

Michael Stay

Cryptanalyst Michael Stay recovers $300,000 in locked Bitcoin keys by executing a sophisticated partial-known-plaintext cryptanalysis attack against legacy Zip encryption.

Summary

The High-Stakes Recovery of Locked Crypto Assets

When a cryptocurrency investor forgot the password to an encrypted Zip archive containing hundreds of thousands of dollars in Bitcoin keys, they turned to legacy cryptanalysis.

Revisiting 20-Year-Old PKZIP Cryptanalysis

Michael Stay revisits Biham and Kocher’s classic known-plaintext attack against PKZIP stream encryption, adapting historical techniques to handle limited known plaintext.

Engineering GPU-Accelerated Key Reduction Engines

Stay outlines the mathematical breakthroughs and custom CUDA GPU kernels developed to reduce the internal CRC32 and linear feedback shift register state spaces.

Successfully Reconstructing the Private Key

Executing the cryptanalytic reduction recovered the internal encryption keys within days, unlocking the archive and securing the Bitcoin funds.

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