Panic erupts in the crypto world! The "Bitcoin family" abandons hardware wallets and disperses their private keys across four continents!

With the soaring market capitalization of Crypto Assets, violent crimes against holders of Crypto Assets have sharply increased globally, and an invisible "kidnapping panic" is spreading in the crypto world. From France to the United States, multiple cases of kidnapping, extortion, and even torture against well-known cryptocurrency entrepreneurs and their families have shocked the entire industry with their horrifying details. Against this backdrop, the "Bitcoin family" known for being "all in BTC", led by Didi Taihuttu, recently announced that they have taken extreme yet innovative security measures to address the growing threats: completely abandoning the hardware wallet, once hailed as one of the safest storage methods, and instead adopting a "distributed steel plate storage" solution that splits and hides private keys (mnemonic phrases) across four continents. This move not only highlights the increasing security anxiety among crypto assets tycoons but also signifies a profound evolution in the concepts and technologies of crypto asset security protection. In recent months, violent crimes against crypto assets holders have frequently made headlines, with their brutality being appalling: France: Earlier this year, David Balland, the co-founder of Ledger, a well-known hardware wallet maker, and his partner were kidnapped and tortured, and Barland reportedly even lost a finger in the process. Shortly thereafter, a video of the daughter of another prominent French cryptocurrency exchange CEO nearly being kidnapped in broad daylight went viral, further fueling the community's fears. In the wake of the incident, the French government pledged to strengthen security protections for crypto executives, including providing priority access to the police's emergency hotline, home safety patrols, and security guidance from law enforcement. USA: An Italian tourist was kidnapped and imprisoned for 17 days in an apartment in Manhattan, New York, where he was subjected to a variety of tortures, including stun guns and whipping. The kidnappers' goal was to force him to hand over the password to his Bitcoin wallet. Fortunately, the victim was able to escape, and the kidnappers were arrested at the end of last month. These bloody cases have made public advocates of Bitcoin, like the Taihutu family, who live a highly transparent lifestyle as "Bitcoin missionaries," potential high-risk targets. "We changed everything," Taihutu said in a recent interview with CNBC in Phuket, Thailand. "Now, even if someone holds a gun to my head, I can only hand over the little Crypto Assets in my mobile wallet, and that's not much." As early as 2022, Tai Hutu revealed that he had dispersed his home’s Crypto Assets hardware wallets across multiple locations around the world, from short-term rental apartments in Europe to storage rooms in South America. However, in the face of an increasingly severe security situation, he believes this is still far from enough. "It’s a strange world, so we are taking our own precautions—when it comes to wallets, we are no longer using hardware wallets at all now," said Tai Hutu. The reason they abandon hardware wallets partly stems from concerns about potential backdoors or remote access features in hardware devices. Over the past eight months, the "Bitcoin family" has shifted from complete reliance on hardware wallets to a hybrid system that combines digital encryption with physical storage.

The core idea of this brand new security system is "extreme decentralization". The specific operation is as follows: Split mnemonic: They split a 24-word Bitcoin wallet mnemonic phrase into four groups, each containing six words. Distributed storage across continents: These four sets of mnemonic phrases are stored on four different continents around the world. This means that to restore the entire wallet in its entirety, Taihutu must make at least one international trip, depending on which part of the mnemonic phrase is needed. However, the transfer of funds to this wallet address will not be affected in any way. Mixed storage media: There are also a variety of storage options. Some of the mnemonic phrases are stored digitally through a blockchain encryption platform, while others are hand-carved on fireproof steel plates with hammers and letter molds and hidden in secret locations. Add a personal encryption layer: To further enhance security, Tehutu has also added an additional layer of personal encryption – he replaces certain words in his seed phrase. "You just have to remember which words you changed." He added. As a result, even if an attacker manages to find most of the mnemonic phrase fragments (e.g., 18 out of 24 words), they will not be able to restore the full wallet. Taihutu's family has stored about 65% of their Crypto Assets this way. He believes that this method is safer than keeping assets in centralized vaults like those used by Xapo, a company under Coinbase, in the Swiss Alps. This is because he worries that if the company providing custody services goes bankrupt, he may not be able to retrieve his funds. In addition, although Tai Hutu has not disclosed the total assets of his family, he revealed that their goal in this round of bull market is to reach a net worth of 100 million dollars. In terms of asset allocation, 60% is still in Bitcoin, while the rest is diversified among tokens such as Ethereum (ETH), Solana (SOL), Chainlink (LINK), Sui (SUI), and some investments in new companies related to artificial intelligence and education, including the blockchain education platform he founded.

The experiences and coping strategies of the "Bitcoin family" also reflect some new security trends that are emerging in the entire crypto assets industry: Kidnapping & Ransom Insurance (K&R Policies): As attacks are on the rise, insurers are seizing the opportunity to launch "kidnapping and ransom insurance" tailored specifically for crypto holders. Multi-signature Wallets: For hot wallet assets that require frequent transactions, Tehutu uses multi-signature wallets for added security. This type of wallet requires multiple private keys to be jointly authorized to complete a transaction, effectively preventing a single point of failure. Multi-Party Computation (MPC): In addition to traditional multi-signature wallets, Taihutu is also focusing on MPC technology. This technology disassembles a single private key into multiple encrypted fragments, which are stored in different entities or systems, and the transaction requires multi-party collaborative computing to complete the signature, further reducing the risk of the private key being leaked by a single link. Shift to decentralized exchanges (DEXs): Due to concerns about risks such as data breaches on centralized platforms, such as Coinbase's recent data breach, more and more users are leaning towards decentralized exchanges. Tehutu also said that about 80% of his current transactions are done on decentralized platforms. In conclusion, as wealth and visibility increase, Tai Hu Tu began to consider gradually fading out of the public eye. "We have become somewhat famous in a niche market, but this niche market is now turning into a very large market." He believes that incidents of robbery and kidnapping targeting cryptocurrency holders will continue to increase. "I love creating content, but if it is no longer safe for my family, I will stay away from the camera." This statement by Tai Hu Tu expresses the heavy price that must be faced while enjoying the wealth brought by Crypto Assets. For the entire crypto world community, the story of the "Bitcoin family" serves as a profound reminder: in a decentralized world, true safety ultimately relies on oneself. And this safety is not only on a technical level but also involves a comprehensive reshaping of the physical world and lifestyle.