Earlier this month, computer programmer John McAfee released "the world's first un-hackable storage for cryptocurrency & digital assets" -- a $120 device, called the Bitfi wallet, that McAfee claimed contained no software or storage. McAfee was so sure of its security that it launched with a bug bounty inviting researchers to try and hack the wallet in return for a $250,000 award. Lo and behold, a researcher by the name of Andrew Tierney managed to hack the wallet, but Bitfi declined to pay out, arguing that the hack was outside the scope of the bounty. TechCrunch is now reporting that Tierney has managed to hack the Bitfi wallet again. An anonymous reader shares the report: Security researchers have now developed a second attack, which they say can obtain all the stored funds from an unmodified Bitfi wallet. The Android-powered $120 wallet relies on a user-generated secret phrase and a "salt" value -- like a phone number -- to cryptographically scramble the secret phrase. The idea is that the two unique values ensure that your funds remain secure. But the researchers say that the secret phrase and salt can be extracted, allowing private keys to be generated and the funds stolen. Using this "cold boot attack," it's possible to steal funds even when a Bitfi wallet is switched off. Within an hour of the researchers posting the video, Bitfi said in a tweeted statement that it has "hired an experienced security manager, who is confirming vulnerabilities that have been identified by researchers."

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