BitForge zero-day vulnerabilities allow cryptocurrency to be stolen from popular wallets in seconds

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With BitForge, crypto holdings are disappearing faster than any hope of a stable exchange rate.

Two zero-day vulnerabilities were discovered in the implementation of the widely used cryptographic protocols GG-18, GG-20 and Lindell17. The shortcomings affected popular crypto wallets, including Coinbase, ZenGo and Binance. Vulnerabilities allow an attacker to steal cryptocurrency from a wallet in a matter of seconds without user interaction.

The Fireblocks cryptographic research team discovered the flaws in May 2023 and named them "BitForge". Analysts released information about BitForge in a BlackHat presentation.

For now, Coinbase and ZenGo have fixed the issues. However, according to Fireblocks, Binance and dozens of other wallet providers remain vulnerable to BitForge. Fireblocks also created a status check tool for projects to check if projects are at risk due to improper implementation of the confidential computing protocol (Multi-Party Computation, MPC).

The first vulnerability (CVE-2023-33241 CVSS: 9.6) affects GG18 and GG20 Threshold Signature Schemes (TSS), which are fundamental to the MPC wallet industry, allowing multiple parties to generate keys and co-sign transactions.

An attacker, depending on the implementation parameters, can send a specially crafted message and extract key fragments in blocks of 16 bits, extracting the full private key from the wallet in 16 attempts.

The second bug (CVE-2023-33242 CVSS: 9.6) affects the implementation of the Lindell17 (2PC) protocol, is of a similar nature and allows an attacker to extract the entire private key after 256 attempts.

The disadvantage lies in the implementation of the 2PC protocol, not the protocol itself, and manifests itself in the mishandling of interrupt wallets, forcing them to continue signing transactions that inadvertently expose private key bits. The flaw also exposes the client's private key using specially crafted messages. It takes 256 requests to fully extract the key.

The analysts also published two proof-of-concept (PoC) exploits on GitHub for each of the protocols, GG18 and GG20, Lindell17.
 
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