Cardano Founder Challenges Hackers with $1 Million Bounty

Cardano founder Charles Hoskinson has offered a $1 million bounty for anyone who can successfully hack the Lace Paper Wallet. Input Output Global (IOG) introduced the Wallet at the Rare Evo 2024 event.

In an August 17 video on X (formerly Twitter), Hoskinson announced that the challenge will remain open until the end of 2024 or until someone claims the bounty by hacking the wallet.

Hoskinson Offers $1 Million to Test Lace Paper Wallet Security

IOG designed the Lace Paper Wallet to be one of the most secure in the cryptocurrency industry. It features two QR codes for public and private keys, with the private key encrypted using PGP (Pretty Good Privacy) to mitigate common risks associated with paper wallets.

“This is, I think, the most secure paper wallet ever generated in the history of our industry,” Hoskinson said.

Hoskinson expressed confidence in the wallet’s security. He said the wallet protects against replay attacks that allow a malicious actor to gain control of private keys to execute unauthorized transactions. By encrypting the private key’s QR code, Lace Wallet ensures that only the rightful owner can restore the wallet. This makes it safe to back up as a PDF file or store in an email without risking unauthorized access.

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Due to this, he is offering $1 million in USDM stablecoin to anyone who successfully breaches Lace Wallet. Participants must hack the wallet by accessing its encrypted private key and retrieving the non-fungible token (NFT) stored inside.

According to the program’s rules, the first person to submit the NFT to IOG will receive the bounty. However, to claim the reward, participants must meet several conditions. This includes passing a KYC (Know Your Customer) process, disclosing the exploited vulnerability exclusively to IOG, and refraining from using social engineering techniques to breach the wallet.

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The bounty aims to uncover any vulnerabilities in the Lace Wallet that developers may have overlooked. By offering a significant financial incentive, Cardano aims to validate the wallet’s security or identify issues that must be addressed before its public release.